Methods adopted by Western countries during Covid-19 pandemic caused stress in economy: FM Nirmala Sitharaman
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The Union finance minister Nirmala Sitharaman has said certain methods used by Western economies during the Covid-19 pandemic caused global economic stress as an after-effect. Sitharaman mentioned ‘Western economies took a certain formula for dealing with the stressed economic situation (that emanated from the Covid-19 outbreak). They had a recipe with which they wanted to attend to their economies.’
According to Sitharaman, many of the Western developed economies adopted that method -- like printing more currency and distributing it among people -- in dealing with the stress in their economies. That method has now proven hurtful as an aftereffect in their respective economies. ‘The methods they adopted resulted in huge cash in the economy. As a result, inflation has shot up the roof,’ she said, referring to those countries where inflation had touched multi-decadal highs.
This method resulted in double-digit inflation in their economies, something which wasn't seen there in 30-40 years. Moreover, she said some advanced economies having the possibility of going into recession may push India's exports down as a spillover effect. she added the recessionary phase will have spillovers worldwide.
