Скачать или смотреть India's Increasing Economic Problems in 2020 | Low GDP & High Inflation -Varun Malhotra

Stagflation is a concern, GDP Growth at a 6 year low and Inflation at a 6 year high are the highlights of the Indian Economy. This is especially alarming because in such situations the conventional tools that RBI uses to increase Economic Activity might not be useful.

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Usually the RBI has one Major tool to increase economic activity and consequently the GDP :

Interest Rates

However, the problem with the current situation is that if you Decrease Interest rates to spur economic growth, it may further increase inflation.

If you increase Interest rates, the economic activity may slow down further and result in increasing unemployment.

This is why this situation where High inflation coupled with High unemployment can be so tricky.

In this video, Mr. Varun Malhotra explains why and how the situation the Indian Economy is in right now tricky and how we can potentially find a solution to it.

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