Nobel Laureate asked India to print more money and not to worry about inflation - page 4.

Darker45

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Quote from: avikz on April 09, 2020, 09:44:14 AM

Nobel Laureate Abhijeet Banerjee has recently asked India to print more money and transfer them to the poor class of people to increase demand in the market to tackle upcoming recession post COVID-19.

I would agree. Let tomorrow take care of itself. If there will be an inflation rate too high than what should be considered acceptable as a result of this, then the government and its monetary and economic teams will take care of it at the right time. They will cross the bridge when they get there. For now, the poor people, millions and millions of them are having an empty stomach. They urgently need food on the table!

Damn the torpedoes!

abhiseshakana

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Many people think who has thought about printing money must have a guarantee of gold and dollars is an old-fashioned thought in the midst of a chaotic world. According to the new economic model proposed by Professor Michael Hudson that printing money does not need to have a gold or dollar collateral, what is important is the guarantee productive project.

It's time for India and all countries in the world to use the knowledge used by China and America. Keynesian is too old-fashioned and knowledge for IMF victims countries. Many assume that the knowledge taught in college cannot provide solutions to economic problems and is deliberately spread by capitalists so that they can continue to dominate the world economy. Whereas the capitalists practice another science, namely modern monetary theory.

BChydro

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Quote from: figmentofmyass on April 09, 2020, 05:22:22 PM

the lockdowns are hardest on the poorest populations, who have no savings, live in overcrowded slum conditions, and are worst equipped for a complete economic stoppage. if this continues for months and nothing is done to mitigate their suffering, they will begin rioting and revolting and taking by force what they need to survive. with a population like india's, no police or armies could ever stop them.

It is a situation that these third world countries need to think while implementing a complete lock down, people will revolt against these lock down as they do not have money nor food and it will create a social violence and the crime starts to increase and if that happens then it will be difficult for the authorities to control the situation and to avoid those they need to act and printing money or providing food is a necessary.

Clement Kaliyar

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Quote from: avikz on April 09, 2020, 09:44:14 AM

Nobel Laureate Abhijeet Banerjee has recently asked India to print more money and transfer them to the poor class of people to increase demand in the market to tackle upcoming recession post COVID-19.
A lot of economists will say it is a bad idea because later it will become very difficult to arrest inflation rate. But increasing the demand is a major challenge as well.

The economy is struggling for a long time and different sectors were affected well before the lock down and in order to overcome the recession if they are printing more money then how they will control the flow of money and how they will be withdrawing the money at a later time, countries like the US and Europe are struggling to withdraw the money they printed earlier and how India will be able to achieve the impossible. The current government has already sold all the public ventures to private parties and i wonder what will be the situation in the next 5 years.

figmentofmyass

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Quote from: avikz on April 09, 2020, 09:44:14 AM

Nobel Laureate Abhijeet Banerjee has recently asked India to print more money and transfer them to the poor class of people to increase demand in the market to tackle upcoming recession post COVID-19.

Reference: https://m.telegraphindia.com/business/abhijit-banerjee-offers-print-money-pill/cid/1763262

A lot of economists will say it is a bad idea because later it will become very difficult to arrest inflation rate. But increasing the demand is a major challenge as well.

Voice your opinion! Will be good or bad step for a diverse country like India?

it depends: do you want stability or revolution?

the lockdowns are hardest on the poorest populations, who have no savings, live in overcrowded slum conditions, and are worst equipped for a complete economic stoppage. if this continues for months and nothing is done to mitigate their suffering, they will begin rioting and revolting and taking by force what they need to survive. with a population like india's, no police or armies could ever stop them.

the question for policymakers is, do you want millions and millions of hungry poor rioting in the streets (which will also make the pandemic grow exponentially as society stops heeding social distancing and quarantines)? or do you want stability at the cost of future inflation?

if i were a policymaker trying to maintain the rule of law, the answer seems obvious.

dothebeats

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Advising countries not to worry with printing too much money is actually a good advice. /s/

The global economy is currently at a halt right now and is in a bad shape. No demand can be pulled off of all pockets except on the food and medical industries. The rest are basically non-essential and does not matter at this point. If every country is to print money to satisfy the welfare of their citizens, expect that inflation will skyrocket, and more and more people will be affected short-term. This is practically telling countries to jump off the ledge and expect for the best, however we know what happens if the advice is followed.

Most countries would surely have their budget intact still for 2020. We're only at the first full quarter of the year and I'm pretty sure governments can re-allocate the budget into emergency funds first and decrease spending on infrastructure and other key areas in the mean time as the most important part of this pandemic is to help keep citizens alive and well. Printing more money should be the last resort, not the first solution that comes into political advisers' mind--be they Nobel laureate or simple economists.

South Park

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Quote from: avikz on April 09, 2020, 09:44:14 AM

Nobel Laureate Abhijeet Banerjee has recently asked India to print more money and transfer them to the poor class of people to increase demand in the market to tackle upcoming recession post COVID-19.

Reference: https://m.telegraphindia.com/business/abhijit-banerjee-offers-print-money-pill/cid/1763262

A lot of economists will say it is a bad idea because later it will become very difficult to arrest inflation rate. But increasing the demand is a major challenge as well.

Voice your opinion! Will be good or bad step for a diverse country like India?

For what I can see the solution being proposed here is in fact supported by the mainstream economists all around the world, they want governments to get indebted or to print money to drive up the demand of goods and curb the recession and prevent a depression from happening, as you may guess I do no like those measures however if the world economy was robust and in decent shape maybe some measures like that could be taken but that is not the case, most governments are heavily indebted already and were printing too much money anyway, if they were to increase both now there is a possibility they could lose control of the economy and the inflation rate could grow to huge levels.

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Its happening in affected countries though and it helped the people during the lockdown. Its not a bad idea as it had been done many times before. If the surrounding countries are printing money to find solution for the crisis, it should be considered. First world countries are even printing more. There are consequences to the action but its very needed for the economy.

fiulpro

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Unfortunately we are right now seeing the worst performance of Indian rupee , but at the same time it is the same situation all around , unfortunately I do not understand why this suggestion appeared when the government could have just change the financial needs of the various sectors and for a while they should stop focusing on other countries and start focusing on their country.
Export of the drugs is very necessary but at the same time other expenses should be cut short .
All the government money should be used for the people , printing more money is not a solution when they can already reevaluate their spendings and create a slot .

It would hit the country harder if the economic situation declines , how about hitting people with corruption and documenting each and every penny that is being used ?

avikz

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Nobel Laureate Abhijeet Banerjee has recently asked India to print more money and transfer them to the poor class of people to increase demand in the market to tackle upcoming recession post COVID-19.

Reference: https://m.telegraphindia.com/business/abhijit-banerjee-offers-print-money-pill/cid/1763262

A lot of economists will say it is a bad idea because later it will become very difficult to arrest inflation rate. But increasing the demand is a major challenge as well.

Voice your opinion! Will be good or bad step for a diverse country like India?

Topic: Nobel Laureate asked India to print more money and not to worry about inflation - page 4. (Read 778 times)