Nobel Laureate asked India to print more money and not to worry about inflation

[avikz]

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?

[fiulpro]

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 ?

[cabron]

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.

[South Park]

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.

[dothebeats]

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.

[figmentofmyass]

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.

[Clement Kaliyar]

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.

[BChydro]

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.

[abhiseshakana]

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.

[Darker45]

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!

[sheenshane]

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.

[el kaka22]

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.

[Pffrt]

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!

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.

[Febo]

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.

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.

[Juggy777]

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.

@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.

[Lucius]

it depends: do you want stability or revolution?

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.

[NavI_027]

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.

[Hydrogen]

Nobel Laureate Abhijeet Banerjee

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

"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 (/ˈnoʊbɛl/, NOH-bel; Swedish: Nobelpriset [nʊˈbɛ̂lːˌpriːsɛt]; Norwegian: Nobelprisen) is a set of annual international awards bestowed in several categories by Swedish and Norwegian institutions in recognition of academic, cultural, or scientific advances. The will of the Swedish chemist, engineer and industrialist Alfred Nobel established the five Nobel prizes in 1895. The prizes in Chemistry, Literature, Peace, Physics, and Physiology or Medicine were first awarded in 1901.[1][3][4] The prizes are widely regarded as the most prestigious awards available in their respective fields.[5][6][7]

In 1968, Sveriges Riksbank, Sweden's central bank, established the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. The award is based on a donation received by the Nobel Foundation in 1968 from Sveriges Riksbank on the occasion of the bank's 300th anniversary.

https://en.wikipedia.org/wiki/Nobel_Prize

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.

[pugman]

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

[gentlemand]

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.