ISAS Insights

While inflation and economic growth, the two fundamental issues of macroeconomics, are often addressed from fiscal and monetary policy perspectives, this paper argues that there is a limitation to the extent they can contain headline inflation and remove barriers to growth. In this connection, the paper suggests that such issues also need to be viewed through a 3D (density, distance and divisions) prism. If addressed properly in the light of the 3D, individual countries of South Asia as well as the region can solve many fundamental problems concerning inflation and growth.