A+| A| A-
Macroeconomic Fallacies
Macroeconomic Fallacies PRABHAT PATNAIK Iam grateful to A V Rajwade for his comments (EPW, June 17) on my paper
I am grateful to A V Rajwade for his comments (EPW, June 17) on my paper ‘On Some Common Macroeconomic Fallacies’ (EPW, April 8). I feel however that I should respond to his piece, even at the risk of appearing churlish, if only to clarify my position to interested readers. I confine myself below to our points of difference, and take them up seriatim.
Against my argument that “if the government borrowed Rs 100 and spent it on a power project then the bulk of it would come back as operating surplus to BHEL and other public sector enterprises”, Rajwade says that “the ‘operating surplus’ would perhaps be 10/15 per cent of the amount spent, hardly the bulk”.
Dear Reader,
