The current global political scene has two leaders of prominence: US President Donald Trump and Indian Prime Minister Narendra Modi. They are a study in apparent contrast but share an undercurrent of purposeful ethos within. Trump plans an explosive fiscal expansion with big ticket infra-spending along with tax cuts. This revisionist New Deal reminds one of the Roosvelt era, except that that was necessarily born out of depression. Trump hopes to animate a sagging economy. By contrast, Modi went for a dramatic fiscal contraction through demonetisation, risking a transient dip in growth for a healthier pick-up later. Both are proving to be resolute in their vision.
Of course, Trump enjoys the exorbitant privilege of today’s dollar posited in a global economy. Other nations hold over eight trillion dollars in their reserve, enough to be compelled to underwrite the vagaries of the value of dollarin realtion to their own currency. But Modi has to do a tightrope walk .