New Delhi, Oct. 15 -- Newest economics Nobel laureate Abhijit Banerjee has warned that the Indian economy is going into "a tailspin" and his prescription is for the government to focus to increasing demand rather than on deficits or stability.
When "the economy going into a tailspin is the time when you don't worry so much about monetary stability and you worry a little more about demand, the demand is a huge problem right now in the economy," he said at a news conference at the Massachusetts Institute of Technology (MIT) in Cambridge on Monday after his prize was announced.
The fall in consumption was a warning sign for India, he said while answering a question about the state of the Indian economy, partly in Bengali, which he translated...