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How much has the economic crisis passed?

by endroar
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Policy inertia by governments and central banks has prolonged our crisis. When the interest rate cap is supposed to be lifted, the government keeps the cap in the name of increasing private investment. Individual investment, however, increased marginally; The mountain of defaulted loans has increased eight times than that. That is, investment has decreased as a net.

After removing the cap, the interest rate now exceeds 13 percent. Businessmen and industrialists are demanding an increase in their spending, which will further fuel cost-push inflation. The exchange rate was supposed to be regularly adjusted to the market. It has not yet caught up with the market. It is claimed to be 'stable'. It is not called 'stability'.

While fuel prices could have been gradually adjusted to global market prices, they were not. Fuel prices were raised at a time when it was lax, adding another fuel to the inflationary fire. The reserve-crisis is keeping inflation running. Thus the perpetuity of inflation is prolonging the current crisis. The claim that the crisis is over is not acceptable.

‚óŹ Dr. Virupaksha Pal Professor of Economics at State University of New York at Cortland

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