WHY OIL PRICES BECAME NEGATIVE, OR DID THEY?

is no reason to reject and discredit it.We should see what the Monetary Authority of Singapore had done, which is to set up a separate entity to address these issues related to cryptocurrencies to see how they could be in sync with the economic systems. If we look now, RBI has no jurisdiction over banning cryptocurrencies. They can only not let people buy/ sell cryptocurrencies through their accounts, but if people are traveling abroad, they can do that very quickly. Therefore, the best option right now is to understand the technology so that we adapt to it and add security features. My argument here is that it is not a question of whether the Indian financial system is ready or not. We have to make sure our financial system is ready because there is no choice other than to accept cryptocurrencies. Overall, the Indian financial system is robust. It is necessary to figure out a mechanism of building credibility by doing it in stages and not doing it in one go. We should not try to build the entire system from scratch as there are existing technologies out there.

Developing countries like India do not have the luxury of large-scale spending, unlike developed countries? However, do you believe that this is not the time to get obsessed with things like fiscal deficit, the fundamental principle of war finance as suggested by some economists?

At the end of the day, we should fret about the fiscal deficit but not over-fret about it. It is okay to have an exception and go for large-scale spending to offset the effects of the pandemic, but it should be coupled with a credible plan. The questions to be asked here are, if the finance ministry sets a target for fiscal deficit, how will this be achieved. If the target hasn't been achieved in the last three years, is it certain that it will happen in the future? What measures will be taken to reduce the fiscal deficit? All this need not happen in a single year. The government can take three years to do so because we need to survive at the end of the day. As long as we have some level of control over the fiscal deficit and are not getting into a Zimbabwe-like scenario that we have a runaway deficit and the entire economy is in shambles, it is not worrisome in the short term. We need to just have a roadmap associated with it to correct the fiscal deficit in the coming years. Realistic goals have to be set up in that regard. Therefore, one should not fret too much over the argument that we are overspending in the short-term cause of the pandemic.

Although there has been a sequential recovery across many parameters, there hasn’t really been an increase in employment. There are still many people who lost their jobs during the pandemic and are still out of a job. What are your thoughts on the same and will help them?

This is a big challenge. Businesses do not need an office to operate any longer. Due to this, the major workforce employed in the staff and maintenance department of these offices has gone out of work. There are a large number of skilled and semi-skilled workers who can provide base services. We need to have a massive reskilling drive for them across the country so that they can be gainfully employed. The relocation that has happened due to the pandemic is a challenge as well. The government should be proactive in taking advantage of this pool by creating employment opportunities that capitalize on these skills. If this is not done, the problem will worsen, as automation already affects the job market, and the downward spiral would be faster. Therefore, offering short-term employment like MNREGA won't work here. Moreover, lack of income and employment will reduce their disposable income. As a result, the entire economic system will regress faster because people won't have enough funds to generate demand in the economy. Therefore, it is necessary to actively engage with them to provide reasonable employment, which is both sustainable and long-term.