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| Exports suggests holistic approaches for minimizing financial crisis | | | EARLY TIMES REPORT
JAMMU, Nov14: Kurukshetra University Professor and Chairman, Department of Economics, Dr. M.M .Goel while speaking on the topic " Causes and Consequences of Global Financial Crisis" at the Department of Economics, Jammu University, here today said that the impact of global financial crisis can be minimized by adopting Holistic, Comprehensive and Systematic (HCS) approach in place of adhoc crisis management by the Government which costs too much for all times to come.
Professor Goel quoted IMF working paper ' Systematic Banking Crisis: a new database' examining 42 banking crises between 1970-2007 in 37 countries like USA in present times began with adhoc crisis management by pumping emergency loans in to failing banks and ended up with increased cost estimated to be 16 percent of GDP.
While identifying the root causes of the present US financial crisis, Professor Goel pointed out the attitude of US household to 'live for today because tomorrow never comes' which encourages them to live beyond their means. The saving rate has been declining to negative. So is the US Government with national debt of over 10 trillion dollars. To save the Indian economy from the fiscal crisis of today, it would be relevant to adopt the canons of public expenditure advocated by Ambedkar in terms of the faithfulness to the intentions of the will of the people, wisdom as provided by the professionals in the field, coupled with well-considered and honest judgment, and economy in execution. The allocation of public expenditure among competing demands and the manner of utilization fall within the domain of Ambedkar's canons, which can be seen as a touch-stone to see whether a particular item of public spending is necessary or not, said Professor Goel - a keen observer of the Indian economy.
To cope up with the effects of global crisis, we need to become shock proof with higher emotional quotient (EQ) including, patience, motivation of self and others, empathizing and not sympathizing with one and all., opined Professor Goel.
Earlier, Dr. Rajinder Gupta Professor and Head, Department of Economics, Jammu University welcomed and introduced Professor Goel to the audience present on the occasion. Other members of the faculty like Prof Nirmal Gupta, Prof Dipankar Sengupta were also present. |
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