Dear Editor,

I refer to Mariner's remarks Promote small businesses to stimulate economy [2] to promote small businesses to stimulate the economy.

A valid idea but I think he misses the business linkage of the economic stimulus announced by the Hon. Minister of Finance. Actually, business scenarios (or the economy as a whole) can not be stimulated without stimulating aggregate demand first via expansionary fiscal and monetary policies. The effort currently pursued by the Hon. Minister under the Task Force for Regulatory Reform (see minfo.gov.to website) is a good example of the government's growth initiative to promote small business by addressing rules/policies and procedures that are perceived as an impediment to business development. The economic stimulus announced by the Minister of Finance, I am sure, was aimed to stimulate aggregate demand by giving extra liquidity to the hands of the servants. The multiplier effect of the policy, indeed, will bolster the purchasing power and act as self-stimulator to the business system. Changing interest rate is known as monetary stimulus and I don't want to touch on it here.

Malo lahi

JP

jpalu70 [at] yahoo [dot] com