Tag: Meenakshi Rajeev

• June 2, 2020

  The Covid Paradox — Keynes turned around

  The Indian economy, which was facing demand deficiency and slowdown prior to theCovid-19 outbreak, plunged further with the lockdown. The present exercise represents the current problem as a typical demand constrained Keynesian equilibrium, afflicted further by demand and supply failures generated by transaction costs. The resulting scenario resembles a “supply constrained” Keynesian equilibrium.