The harm that orthodoxy does

The less the better, because once again that's not how governments or central banks can, or should, work. Indeed, they can't.

Over the past 30 years, western economists and their Indian chelas, in zealously hunting down central banks and governments, have developed a massive body of literature to show how the monetary and fiscal policies of a country must have just one target each.

Central banks, they say, should target only inflation and governments must target only the fiscal deficit. Both, they say, should be low and stable.

This sounds both sensible and easy. Except of course that it isn’t, because there is a third variable invisible to economists: Employment.

So what the economists keep demanding is like saying that the government and the