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A theory is appropriate as long as it fits into the fact; when a theory doesn't fit in the fact, it's wise to walk with the fact.

Wednesday, January 25, 2012

Economy in twin troubles!

Shamsul Huq Zahid from the Financial Express writes on the two main economic problems that the country is now experiencing: (i) low inflation, and (ii) low investment, both public and private. He rightly finds the two basic origins of these two problems: (i) excessive government borrowing, basically to finance oil-based quick rental power plants and (ii) stock market crash in late 2010.

For the detailed analysis, please read this article.

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