Trade-liberalization after full-employment will help...

INDIA in 2015 became the fastest growing economy in the world after China after change in the methodology for calculating real-gross domestic-product, but its high inflation (due to supply-side problems and slow trade-liberalization) and high nominal interest rate has put brakes on demand-supply, employment and achieving potential economic growth-rate... Higher growth-rate is important for higher demand, investment, and profits/wages with price-stability and full-employment. Monetary-policy is a supply-side tool, but it also increases demand in the economy by the way of increasing employment, but, again not after full-employment... Full-employment means we have reached our limits and there is a scarcity of labour within the economy, and supply cannot be increased with domestic labour and prices or inflation start rising... This can be called the labour supply-side problems with structural-factors like education, skills and productivity... In this situation if we want demand-supply and growth without increasing inflation we need external supplies or the international-trade without which the economy will only feel overheating and loss in the value of money and demand... External sector is as important as the domestic sector in fulfilling demand, increasing welfare and achieving higher-growth rate... If trade-liberalization does not reduce domestic employment and help lower prices and interest rates, it should be promoted, because that might eventually help us achieve full-employment and full growth... The point is that if we have achieved full-employment, trade-liberalization will also help achieve price-stability... More supply and lower prices are important for lower interest-rate, high investment and high economic-growth...