Is a macroeconomic policy where there is a rapid economic growth while maintaining low inflation rate sustainable?
Yes it is doable, but it will be very difficult to do that without using monetary policy. But the way around it is to have the economy perform productively and make some economic productivity gains. Otherwise it will be very difficult. Inflation, deflation and recession are economic cycles in free market economies. Sometimes it will be important for the government to cut spending. But no government wants to cut spending because of political reasons. But genuine governments should explain what is to be done. When the economy overheats, there are reasonable fiscal and monetary tools that are conventionally used by all governments in economic theory except in communist or socialist states. At least one or the other of fiscal or monitory policy must be used or both of them have to be used. What EPRDF claims to have achieved, growth without using these two has never been done. It must be a new discovery and that was why I brought the question up in Parliament for discussion. Q. What will ME
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