An impossible fiscal trinity for Arun Jaitley3 min read . Updated: 12 Jan 2018, 11:39 PM IST
It is impossible for India to simultaneously keep farm prices high, retail food prices low, and overall inflation under control through a tight fiscal policy
Almost five years ago, this newspaper had proposed an impossible trinity of fiscal policy goals which handicaps any Indian government. The idea is worth reiterating at a time when the pattern of voting in rural Gujarat during the recent assembly elections has led to a wave of commentary on how the Narendra Modi government will have to do something for farmers in the next budget if it has to win back the rural voter.
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