This, in turn, has become possible with the improvement in fiscal performance reducing the public sector’s draft on private savings, thereby releasing resources to be utilised by the private sector. For the growth momentum to be sustained, it will therefore be necessary to continue the drive for fiscal prudence at both the central and state government levels.
Eichengreen explains it the following way: “…depression and financial collapse were avoided, if barely. This fostered the belief that the flaws of the prevailing system were less. It weakened the argument for radical action […].