There are a few myths in Economics and here is an attempt to handle a few of them. The worry is that these myths are so ingrained that we may all find it difficult to even accept that it is wrong. However, wrong it is, and let me start by enumerating them:

1. There is only one type of growth.

2. We pay interest ONLY if we borrow money.

3. The rich get richer because of God’s will.

4. Interest rates affect all of us equally.

5. Inflation is an integral part of growth, and is unavoidable.

6. The government wants to REALLY teach you – this could be any basic skill.

Will try to write about each of these myths…obviously some are more important than the others. No promises on when I will do it though!

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  1. lovely. especially number 5.
    this nonsense is heard on TV from big name pundits and govt apparatchicks like chote ustad Montek babu. they claim as if inflation is caused by outside incidents like bad rains,el nino (russia tried claiming that for 60 years of communism),oil speculators,greedy onion retailers and all that.
    none of them observe the money supply and the massive govt borrowing +deficit financing.
    in the past deficit financing would have been punishable by death,today it is as if part of all party manifesto.

    i’ll go with HL Mencken. ‘Democracy is the idea that the voter knows what is good for him and how to obtain it,and deserves to get it hard’

  2. One of the shocking reason I heard for inflation is come from our babu’s. It goes like this

    “Poeple from rural India started eating good food”

    It makes me wonder what these idiots are coming to say? They want people to eat lizards only so that inflation will be under control.

    What the ****?

  3. As they say, “Ask five economists and you’ll get five different answers – six if one went to Harvard.” LOL

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