Economics is never out of fashion and is always developing, said Meghnad Desai, Chairman, Meghnad Desai Academy of Economics (MDAE), renowned academic, and Professor Emeritus, London School of Economics, while delivering a talk at MDAE.
Talking about MDAE, Desai highlighted the emphasis on practical education and applauded the academy for its efforts to provide quality education. He also touched upon the various current economic issues and news around the world in his lecture.
He spoke about his new book due for launch — Poverty of the political economy — which is based on the increasing hostility of the economy toward the poor and the disparity between rising income tax rates versus allowances made to the underprivileged. It also talks about how and why this kind of economic policy became acceptable and slowly came to be known as a sound economic policy.
While talking about bitcoins and cryptocurrency, he said that bitcoin is a paradox for economics as it is something that is of no use but has an exchange value. “Cryptocurrency is a success only in the idea that you can give it away or else you sell it. It is called boost-trap equilibrium.” He also emphasised how the Indian government should assume the role of regulator and not that of a controller.
Talking about inflation and oil prices, he mentioned a historic event in the 70s where the price of oil increased by $5 (along with the effects of stagflation) and drew the comparison with the current situation due to the Russia-Ukraine crisis.
In his closing remarks, he said, we need to relook at economics from a fresh perspective, where we value human life and how preserving human life should be the topmost priority of economic policy and advocated a detour toward development economics.