Ruminations II
UPDATE: There seems to be a mistaken inference from this post, that the concept of "economic holes" is the same as liquidity crunch, and demonetisation from 2016 is the cause for that. This is not true. Liquidity crunch typically happens due to hoarding of cash, arising primarily from uncertainty in the economy. Economic holes is a money supply problem. It is much deeper, and has nothing to do specifically with the current government or demonetisation. Both the current government and previous ones, have ignored this problem. I'd written about economic holes back in the early 2000s. It is really about whether an economy has relevant mechanisms to make its money supply keep up with the demands of a growing economy. The Indian mind may have an acute acumen for sustainability , but what we really don't understand is growth and its importance. To put it in dharmic terminology-- we have an instinct for dharma , but we don't understand the importance of prana . B