Zhukov
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1-You can never have Fiscal Surplus in Developing countries. You always have deficit to keep Higher Growth rate. Fiscal Policy is differentFiscal deficit drives state bank lending, which drives inflation, which drives interest rate and if not appropriately managed will drive current account deficit ... this is economy 101
The reason why IMF wants both...
2-State bank printing money (Or Local Borrowing) is a must, But it must be coupled with Economic growth for development.UK have Printed more money then Pakistan( they have done more internal Borrowing)
3-Interest rates have nothing to do with Fiscal Deficits, Its monitory Policy Tool from State bank to control Lending Trends.
4-IMF want you to manage your Fiscal and Monitory Policy so that you achieve the desired Growth rates and other economic Goals so that at the time of maturity you are able to pay back their loans.
Any ways i am not here to class anyone on economics here or counter anyones concepts or beliefs on economics. Believe what you have studied or read i have no problem with it Brother.
Un till and Unless don't put breaks on Imports, Your Businessman don't start spending on Business development more then luxuries. Be it Quid e Azam Reincarnate Ruling Pakistan you will never get out of this S*** Show no metter how you abuse the rulers