Monetary
policy can only make credit cheaper, it cannot bring
money into the hands of workers. It cannot compensate
for a fiscal stimuli, especially when India is in
a liquidity trap. For such an unprecedented crisis,
fiscal spending has been highly inadequate.
* The authors are
with Indian Institute of Management Calcutta, Kolkata;
they may be contacted at parthapal@gmail.com
and pray@iimcal.ac.in,
respectively
