India and the mistrust economy

By: Kaushik Basu,  in The New York Times
Tue, 11/05/2019

Kaushik Basu, the C. Marks Professor of International Studies in the economics department, writes in this New York Times opinion piece about the effects of the Indian governments actions on the current state of India’s economy.

“A drop in investment is usually connected to a lack of trust in the present and the near future. When businesses worry about a country’s policy environment, they hesitate to sink money into it,” he writes. “A government’s heavy-handed interference in the market — such as the Modi administration’s decision to ban some paper currency in late 2016 — or general fractiousness, in politics or within a bureaucracy, can hurt confidence in the economy.”

Read the entire opinion piece.

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