Hmm... Does it matter...

 

 

Hmm...  FD (fiscal-deficit) the question is “how much it should increase?” So... straight away equal to the rate of growth of population and labour-force... My point is that if population increases 10% per-year-ten-year, then the economy’s needs should be met with 10% FD every-year and to keep all the labour-force absorbed in the economic-activity, and with the same reasoning, one more FD (fiscal-debt) should match that pace too, even monetary-policy should increase money supply with the same speed, because people needs, again, are increasing, the same rate... These are all in one way or other are expenditure from all the (above sides)... and the velocity of inflation should also be of the same magnitude... Because nobody actually knows what should be the right mass of money we need to get to the potential growth-rate... which is also affected by the rate of technological progress.... In that case we might have an unemployment-rate above the natural-rate... Like many Western countries... the rate of innovation in the society has slowed down and the population rate of growth is also below par... Their money has power too... But that is a different stage... INDIA is not that developed so that people have to work longer, good skills can increase the productivity (invest)... I know you must not have read something like this anywhere else... But, full-employment is the real objective and good employment with good income... People need more money...  Apart, from the text-book... Does it matter... Why we are delaying in supplying the demand... The government has a greater role... Long working hours too...