(NB This is one of a set of articles that include “India in World Trade & Payments”, “Fiscal Instability”, “Fallacious Finance”, “Indian Money & Credit”, “Indian Money & Banking”, “Against Quackery”, “Indian Inflation”, “Monetary Integrity and the Rupee”, “The Dream Team: A Critique” etc., as well as “Mistaken Macroeconomics” etc. See My Recent Works, Interviews etc on India’s Money, Public Finance, Banking, Trade, BoP, Land, etc (an incomplete list) )

May 8, 2012 at 8:51 pm
The weakness comes from basing economic policy and public welfare on ideas of demonstrable exility. The moral law may be a fine basis to live your life but hardly to run your country. Cheating your citizens is then only an easy next step, because it is all for a higher cause, much like religious charlatans, except that you hope to get the votes and subsequently the notes. You cannot give food security if you can’t pay for it, not can you provide a right to education when you haven’t a truant administration, not teachers not schools. Hypocrisy is embedded in the subcontinental mind. Making gestures is what Indian politics is all about as H Hatterr might have said.
May 8, 2012 at 11:04 pm
What I have implicitly done in the article is describe what is known as the “Government Budget Constraint”, which has to be met by any government. Inflation as a means of making the government’s ends meet is quite standard practice (which may go to suggest dishonesty of course in all such governments).