Keynesian Economics and Under-Developed Countries Again

Countries Again A K Dasgupta /t is resources constraint rather than demand deficiency to which one would have to turn for an explanation of mass unemployment and underemployment in an underdeveloped country In India we have had the telling experience of rising prices and money wages invariably associated with deficit-induced investment. There may have been misallocation of resources, leading to over-capitalisation and periodic depression in one or the other sector of the economy. But of a general deficiency in aggregate demand there is hardly any evidence.