The former member of the Prime Minister’s Economic Advisory Council says a stimulus package without reforms will only achieve ‘stagflation’.

 

Official estimates from last week show that India’s Gross Domestic Product growth has slowed from 7% in just four quarters to 4.5%. On Thursday, the …

The government has taken several policy initiatives to address the current economic slowdown. These important and necessary measures to ameliorate the slowdown have addressed 1) sentiment, 2) the credit pipeline, 3) policy misinterpretations and 4) sector specific issues. However, if, as I have been arguing, the roots of the …

The question then is: On what should government spend this extra borrowing?

 

Several economists have recently argued for increasing public expenditure, through deficit financing, to address the current growth slowdown. This argument rests on the premise that increased government spending would enhance purchasing power in …

The government must announce a calendar for implementation of Friday's measures

 

I have been concerned about some macro-solutions proposed to address the slowdown. Calls for fiscal stimulus are misplaced and would, without much sustained benefit, jeopardise the hard-earned macroeconomic stability attained since 2014. Monetary and …

(Coauthored with Lekha Chakraborty) 

 

Often, fiscal stimulus is launched through the tax side than expenditure side, assuming that the buoyancy of the former will ensure minimum fiscal slippage, while shoving the economy out of a glut. The general idea is that a reduction in rates will …