Successive govts have ignored traditional economic fundamentals such as high aggregate demand, real exchange rate
The macroeconomic policy framework of successive regimes is composed of fiscal prudence and tight monetary policy to achieve low inflation rate. These so-called good macroeconomic fundamentals have hindered the desired structural change in the economy. These macroeconomic fundamentals have a great impact on the followings.
Tight fiscal and monetary policies give rise to an over-valued rupee vis-a-vis the US dollar. This over-valuation affects the competitiveness of exports.
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