Caution! Economy going to ICU: Arvind Subramanian, former chief economic adviser

New Delhi, December 14, 2019, Saturday

Former chief economic adviser to the country, Arvind Subramanian, said the government needs to be cautious immediately. The country's economy is moving towards the ICU. Severe depression can occur at any time.

In a draft paper from Harvard University's Center for International Development, Arvind said that the Indian economy is currently experiencing another phase of crisis like the Twin Balance Sheets. This can result in severe depression. The government has a special need to be careful.

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He said that this is not a normal recession, it is a very serious recession and there is an urgent need for the government to pay immediate attention to this.

The co-author of this draft paper is Josh Feldman, head of the Indian Office of the International Monetary Fund. Arvind, who is currently teaching at Harvard Kennedy School of Economics, noted in this paper that there was a big difference between the previously described TBS (Twin Balance Sheets) and the current TBS-Two.