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Re: Question for economists/policy makers



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>From: Npsingh123@aol.com
>I am no economist, but my guess is that government printing presses are

>already working overtime to print rupees.

Why do you think India's inflation rate (8%) is higher than its GDP
growth
rate (6%)?  That is, India's real growth rate is -2%.

>In the circumstances it might be a
>better idea to get shiploads of roubles from Russia (along with their
>military junk) and distribute crisp foreign money to our people. Rest
>assured, our politicians are already working on these and other
creative
>schemes.

If the solution was that simple, rest assured that they would have done
it 5
decades ago.  In fact, every country in the world would have done this
long
ago, and unemployement, poverty, etc would have been eliminated.

>
>In a message dated 2/22/01 11:44:11 PM Central Standard Time,
>perdi420@yahoo.com writes:
>
><< Hi All,
>
>  I have no knowledge of Govt finances so this may be a really stupid
>  question
>  to those who know why.  In the last few discussions, people have
>  mentioned a
>  "lack of capital" as a reason for not building roads, power plants
etc
>  etc.
>  Why does the Govt need outside investment to build roads.  For
example
>  if
>  building a network of highways connecting Maharashtra costs say 19000

>  crores, why doesnt the govt print that money, and use local
>  companies/labor.
>   Introducing all that money into the markets will have 2 effects,
dilute
>  the
>  value of the rupee and possibly cause inflation.  However, isn't that

>  better
>  than paying dollar based interest amounts to foreign companies???
>
>  Thanx
>  AP
>   >>



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