Topic: Nobel Laureate asked India to print more money and not to worry about inflation - page 3. (Read 749 times)

I don't know what the attitude of the Indian police is on a day to day basis, but in the UK the police are asking for cooperation mainly. If they all started chasing people around with sticks I don't think their legitimacy would last too long.

In most states in India police are taking strict actions against lock down violators including beating their ass up and giving them silly punishments, i do not support police brutality during this pandemic situation and today there is a terrible news coming from Punjab where people cut off the arm of a police officer when they tried to stop them. People are loosing their minds sitting at home and with brutality like these, its awful.

I do accept that Keynesian concept will not work in 2020, it is an age old concept and it worked well during the great depression but not anymore.

If people violate the lock down, impose heavy fines and take legal actions and if they violate again they should impose jail terms and make sure they understand the gravity of the situation rather than beating people like animals.

Printing more money can have other dimensions too rather than giving money to each household, the government will allow people to loan amounts from banks with much lower interest considering many business lost money during these period and to help them out the government will provide loans, relief fund does not mean printing more money and since the suggestion is given by a Nobel award winning economist i expect some logic in what he meant.

If inflation really takes hold then the whole country seizes up and even if you're earning in an effectively inflation free way there might not be anything to buy. Look at supply chains, imports and production in places like Zimbabwe and Venezuela.

I don't know how you moderate it but you'd need to keep a careful eye on it.

I absolutely agree with this, and, also, I don't think a Nobel Laureate in Economic Sciences could recommend something bad, regarding economy.

I just want to add one point, which may seem controversial, but that's what I think based on my experience. Poor people don't suffer from inflation because they don't have savings, and thus nothing in their possession can be devalued. A daylaborer spends all he earns the same day, or the day after, and if inflation comes, the prices rise and he's paid more for the same job.

The advice from the OP may not be suitable for all countries, but I think it would be a good step for India, where 30% of the total population lives below poverty line, earning less than $1 per day.

I saw a docummentary about life in the poor slums of India. There are whole communities, towns even, that live off segregating trash. Their houses are gull of plastic bags and bottles, they literally sleep on piles of plastic and wake up early every day to bring back more before the busy day starts and the city wakes up. They sleep during the day and work at night and morning to clean up the streets and get paid less than 5 dollars a day.
They have running asbestos factories that mix it with concrete to make roof tiles... They have people dismantling electronics in their back yards, working every day in fumes that kill them before they reach 40. India is crazy poor. Many parts of the country are a tipical third world where people live with farm animals in the same building and spend $1 a day on food because that's all they can spare.

Well.. being an Indian resident, I know the reasons for this eye-popping income disparity. The governments have repeatedly followed a populist approach, rather than taking concrete actions to remove or reduce the poverty levels. The single-most reason for poverty in India is uncontrolled population explosion, but yet none of the major political parties have the courage to talk about it. There are certain religious groups that refuse to participate in family planning and no one has the will to enforce the policies on them.

I totally agree with it! The disparity between the riches and poor class is really eye-popping. The world's costliest house is in India and at the same time, world's biggest slum is also located in In India, in the same city indeed! It happens because India has been rules under bureaucracy since independence for the benefit of politicians where common people have no/little power! I too think the current administration should step down and let the young blood take over the country. Our PM failed us miserably and we are seeing highest number of social unrest due to the hate politics undertaken by the ruling party! It's a shame indeed! 

All the novel laureate economists are fanatic fiat system supporters and they are constantly preaching about fiscal and monetary stimulus plans,quantitative easing and negative interest rates from the central banks,lower taxes and giving more money to the poor by the governments.Every time a recession happens,they preach the same stuff.They are like doctors,who are trying to cure flu,aids and cancer using only one remedy.
Even if the Indian government gives more money to the poor,they won't spend the money right away,because of the lockdowns.Most of the small "brisk and mortar" businesses are closed.

According to modern monetary theory, what is meant by printing money is not the origin of printing money with a guarantee of thin air like Americans do, but like China does. In China, the renminbi is printed based on layered projects, for example: money printed by country A0, money is channeled to bank A1, money channeled to entrepreneurs A2 and, etc.

All projects in China, although not important as long as it is still beneficial to people's lives, will be funded by the government. With so many productive projects running, it means that the economy is spinning and labor is being absorbed more and more. With so many workers absorbed will improve the economy of a country and of course the economy of lower and middle class.

From the above explanation, it can be concluded that it is not the origin of printing money, because the collaterals are productive projects not fictitious, and the minimum project layered above 6. The money is indeed non-existent but supervision of its use must be very strict and properly monitored because printing money is not allowed to cover the consumption budget or pay the state debt. Another requirement is that all project raw materials must come from within the country, starting from facilities and infrastructure, raw materials, experts and even laborers. And infrastructure or projects built must be export-oriented so they can attract foreign exchange. Therefore licensing in China for business is made easy even China is encouraging its people to make as many projects as possible.

China has even made a leap forward with its BRI program, the location of the project does not have to be in China, it can be throughout the world as long as the raw materials, experts and workers are from China.
This is the model of colonialism 5.0 which is now intensively carried out by China.

We are not confronted with good and evil here; we are confronted with evil on both sides. So I guess we will just choose the lesser evil, so to speak. On the one hand, we have the choice to let the hungry, unemployed, home-isolated people take care of themselves while trying to keep the monetary foundation stable, at the same time fighting the spread of the virus. On the other hand, we may resort to drastic means which could be detrimental to the long-term economy and monetary value but could keep the people properly fed and therefore tamed and sane in these very trying times. I definitely prefer the latter. The urgency is on that side.

We cannot talk of preserving the future economy and let the people die of hunger or turn to violence. People are forced to stay inside their homes. They are physically hurt when they go outside. What are they going to eat, then? They cannot just start nimbling their walls. 

Finally, the issue is not whether or not the government will continue printing money out of thin air and commit slow suicide. That is happening all the time. The real issue is whether these money will go to the rich business owners or to the hungry majority.

The feeling I get from India is that the leadership either doesn't know or doesn't care what real life is like for most people. They have their space program. They also have people who live in toilets.

The rescinding of bank notes fucked millions of people. Their lockdown fucked even more. How they didn't figure out that most people live hand to mouth on a daily basis and would face starvation within a few days is beyond me.

That being the case I think the Indian establishment should commit suicide and enrich the real people they're supposed to serve on the way down. Do it. It's not as if day to day life would be much more desperate than it already is.

Well, other countries have done it in the past^[1], the US has been doing it for awfully long time, and given the state of the world right now, I don't necessarily see this as a bad thing, people need physical cash in their hands, because not everyone can work from home. And if printing more money is the way, they should go ahead and do it.

An inflated economy is better than a non-existent/economy with a fuckton of unhealthy people.

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^[1]https://www.dw.com/en/what-europes-banks-did-with-the-ecbs-trillion-euros/a-17848344

"Nobel laureate" is the key to comprehending policies pushed by the Paul Krugman and Abhijeet Banerjee's of the world. (See bolded below)



The nobel prize funding and award process is owned, maintained and controlled by banks.

In past eras, the award criteria of nobel prizes was meritocratic.

Today, its more commonly a leftist participation trophy awarded to academics willing to push false narratives and agendas.

I contradict simply because it's a very risky move, it will be a hard punch for their economy if they insist such thing. In my opinion, printing more money is absolutely a bad idea.

Plus, imagine if their government gave money to each household. Yeah it's nice but do you think they can fully harnessed it since their movement is limited because of the strict quarantine? Of course not thus the help would be inefficient. I think much better if their government just give them relief goods because food is what they badly needed anyway. Another, they could also encourage the families from higher classes and private sectors to run fund raising projects to ease the burden they feel. Remember, a government must spend based on country's economy or else everything will get even worse in the long run.

What I'm only pointing is there are still much better solutions. Sacrificing the growth of their economy must be their last resort.

I share your thinking, and I don't think there are any solutions that can help at this point, and that on the other hand, does not cause negative consequences in the future. If USA prints money (let's say it has about 4 times less population than India) and a much lower poverty rate then USA, what choice does India then have if they do not want a complete collapse of society and economy?

The idea is not good, but it is said that from two bad things we should always choose one that is at least somewhat better. People have to eat, they need basic things for life - and if you quarantine them for a few months, it's only a matter of time when they rebel and take matters into their own hands.

Although judging by the footage from India, their police have little mercy on people who do not follow the prescribed measures.

@avikz it’s quiet difficult to answer this question, but in my personal opinion if the Indian government wants it’s citizens to survive in the long run then they may have to take a risk, and print more money and then deal with any issues that pop up later. @figmentofmyass if we take your hypothetical scenario, and just for a minute imagine that a majority of India’s poor population comes on the road and riots, then India will indeed suffer unimaginable damage and therefore I feel it’s best to pay them some cash and control the situation before it gets out of hand.

Inflation is a taxation. They are not worried of more taxes. There will be way more taxes in next decades as it was in previous. Governments will impose them on very different ways. Inflation is one of ways.

You are correct from one point that a lot of poor people are having empty stomach and something to be done to prevent that, through printing money but if it results high inflation in long run, people will have even more worst situation than the current. Higher inflation can destroy an economy easily. An economy should be planned for future too. If they only consider the current situation, they will have worst day in future of course.

I definitely agree, I know printing money increases inflation and it would hurt the economy in the long run but the reality is if you do not print money that would mean a bigger problem today. It is definitely like having a huge debt to pay right now that you can't afford so you pay it with a loan from a bank and instead of paying a huge debt right now that you can't even afford anyway and can't pay right now, you are going to just have a worse problem but for longer period of time so you will have time to figure things out.

I am not saying we will, I am not saying it will recover, but at least it gives people a lot more time to find a way to repay it. In the end printing money to give it to banks is horrible, but doing it so to help people would actually help people.

As far as I know, not only the country of India has printed more money even their government knows that for sure of increasing the inflation and would possibly reduce the value of bonds. Probably it will create a problem in the future.

I agree with the decision of the Indian government, they are need to focus on needy by their citizen. There are many people out there that need help by governments through financial in order to buy foods on table that they need while they are under lockdown. I would say, printing money is good but they should have back-up on it by borrowing extra money, financed entirely by RBI and they should not worry about the inflationary consequences. There is always a solution to it, as of now, think the survival of coronavirus.