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Bharat economy: Nobel laureate Abhijit Banerjee said Bharat’s economy is in a very bad shape. In a way, inflation can keep the economy lubricated and growing. It also keeps the labour demand up. Economy is in demand deficit. Government should lower its equity below 50% in public sector banks as part of the efforts required to remove the fear psychosis that has gripped the banking sector. He believes that higher taxes on businesses could help the government to spend more on welfare measures and to bridge its fiscal deficits................................



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