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A V Rajwade: Overselling neoliberalism

Income inequality and reduced growth apart, it leads to volatile exchange rate, which hampers trade and therefore growth

A V Rajwade

In this column, a couple of weeks back (“Time to upend convention”, August 18), I had discussed an article by three economists in the International Monetary Fund (IMF). It had argued that, in recent decades, “neoliberalism” has been oversold in terms of the economic benefits it is supposed to lead to. One of the items on the neoliberal agenda the article discussed was the issue of capital account liberalisation. While the article argued that such liberalisation leads to income inequalities and this, in turn, reduces growth, it did not refer to another fallout: volatile ...