When perception is reality

A deft, economically sensible policy maneuver puts PM Modi's political capital at risk

A narrative repeated by different sets of people, and doused with a generous cocktail of fact and fiction, is often perceived as the truth. That is the power of perception, or the “Dhrisyam” effect. In a democracy, the way governments are able to shape perception can decide political outcomes. Our ruling establishment certainly did not want to overlook this aspect as it launched the soap opera of the stimulus package.

Faced with the macroeconomic situation before Covid, the options for the government were limited. Its strategic choice of favouring fiscal prudence thus cannot be faulted. Monetising the deficit, without a credible