Hello Anonymous. Your views on current recessionary tsunami, are worth noting. They sound to have strong base and proofs. But at some points, I do disagree with you. See, the recession started from the US, where prime and sub-prime crisis ate the market and it affected, slowly and gradually the entire global economy.
What is worth noting is the emergence of a guide, or as you said, a road map. Few months ago, Indian government was about to infuse Rs. 60000 crore liquidity, which means that the market will be flooded with such a huge amount of money, without really earning it. The money will be printed and added to the flow in the market. Doesn't that sound too 'unrealistic.
A dynamic structure like a market do needs a road map, but the government, especially in India, is trying to become the road itself and not the guide. What happens is that the state makes an artificial stability, which lacks any strong base, which yields a downfall in future, just as in the case of our share market which touched a whooping 21000 and now 11000!
Your views are correct, but that is not being followed there. There are mainly 3 classes of economists right now, the free markets, the socialists and the Communists. The last two are followers of government rule, while the first one support, zero control of state. We definitely need a middle path, but it still needs a much more awareness at the top level.
Keep discussing.
Bhagirath Baria
- Bhagirath Baria
- The Author of this blog has keen interest in understanding Economics and its implications on the Individual and the Economy as a whole. Has been writing articles and analysis of issues that may skip general observation, but exert deep influence on people's lives and their decisions. Discussions and Debates related to conventional as well as non-conventional Economics is done here. The author of this blog doesn't classify himself to any particular School of thought in Economics. He is tilted toward Mainstream Economics, though has keen interest in a few Heterodox schools too. Wishing all the readers a truly enriching experience.
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Hey Mr. Baria,
ReplyDeleteHow are you doing? Seems you are quite interested in the economics section. And yes you are right I had been doing a little research on the current recessionary phase, so I do have an idea about the working of the market in the recessionary phase.
In my last post, I had mentioned that there is a need for a road map so that the world can be brought out of this recession. But due to time constraints, I could not write to you the remedies that I feel should be implemented to get ourselves out from it. Now without diverting elsewhere, I would like to comment on your current review… as in ,on the Indian government.
You have mentioned that the Indian Govt. by infusing a hypothetical sum of Rs. 60,000 crores into the market, has itself tried to become the road. But in my view, it has just not stretched its hand in vain, unnecessarily increasing the liquidity in the market. The Govt’s step was correct indeed it did not get the markets flooded with money, but instead tried to distribute money among the lower and the middle class people through increasing job opportunities. In this way it did help the jobs to get better and the market recovered speedily
Now coming to the economists…yes you are absolutely correct. Every set of economists have different views and they all have unique weightage in their own sense. I respect everyone’s opinion but I have a different prospect of eyeing things….
Keep in contact.
Take care
Sir i have been waiting for your further comments on my last post. Its been quite a lot of time since i have heard some solid substance from you. Awaiting your reply.
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