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 …

(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 …

Economists often trace back the institutional linkages between fiscal and monetary authorities to ‘Unpleasant Monetary Arithmetic’ (UMA) of Thomas J Sargent and Neil Wallace. This UMA regime deals with the question of who “dominates” and who gets the “first-mover advantage” in policy decisions to finance the fiscal deficits. The …

(Coauthored with Lekha Chakraborty and MD Azharuddin Khan)

 

Karnataka is the first state in the country to have introduced a fiscal rules framework, even before the central government had enacted the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. The Karnataka Fiscal Responsibility Act (KFRA) was …

The ‘care economy’ is statistically invisible. No effective macro policy coherence is there to ensure and support care economy in India. More often, women as primary caregivers leave the job market to perform the responsibilities, at the peak of their career. This, in turn, can affect economic growth of …