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The Vicious Circle

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The Vicious Circle
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The government is unable to cut expenses in an election year.....

......and needs more cash......

......but doesn't want to increase money supply since that may hike infilation ......

......which is a key issue in an election year....

......so it has to raise funds from banks......

......which starves industry of funds ......

.....and may lead the government to cut money supply.....

.....which may lead the government to cut money supply ......

......and try raising more money from banks

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