What do you think of a firm that grows sales after taking on debt? Well, as long as the debt remains within permissible limits, we should be fine with it, right? But if debt increases at a faster rate than sales, then alarm bells should certainly start ringing. In the same vein, if a country's GDP is growing but needs more and more money to make the growth happen, it is not a healthy sign. As today's chart of the day points out, while India's nominal GDP has grown at a fast clip over the past couple of decades, the money supply in the economy has grown even faster and this is something we should watch out for. Although the situation is not as alarming as in say US, we need to take steps to ensure that our productivity does not suffer. In other words, we should continue to increase our GDP at either the same rate of growth in money supply or higher. Otherwise, there will be inflation to deal with.