What are the Fundamentals

Pulapre Balakrishnan To attempt to control the economy by targeting certain so-called fundamentals, prominent among them the fiscal deficit, appears to be ambitious in the light of the recent experience. In any case no real fiscal 'correction' has occurred. To cut the deficit and call this 'fiscal prudence' reveals an Orwellian imagination. This article examines the foundations of the macro-economic aspects of the recent policy initiatives.