Sir am i thinking right ?
sir according to notes government should not interfere incase of stagflation but in current situation of India government should increase spending and expansionary monetary policy because the reason for stagflation is not increase input prices
Am i thinking correct
Yes correct, currently economy is affected by pandemic, so people require the support of govt. to maintain their business or stay on it. It’s not the case of stagflation i.e. inflation due to rise in input prices