Article Type

Article

Description

The on going debate on the growing trade and current account deficits and fiscal deficit needs to be encouraged as it creates awareness of economic issues among the general public and puts pressures on the policy makers to take corrective actions. However, this debate has so far been dominated by a superficial or highly perfunctory analysis perpetuated by two extreme positions. Those who wish to criticize and find fault with the government paint a doom and gloom day scenario and argue that deficits are a result of mismanagement and wrong economic policies pursued and pose a serious threat to macroeconomic stability and future growth. Those supporting the government, on the other hand, convey a sense of complacency that may lull us to believe that there is nothing to worry about because these deficits can be financed at present.

Publication Source

Blue chip : the business people's magazine

Publication Date

1-2007

Pages

1-9

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Finance Commons

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