For India to complete its development transformation, a switch to a broad-based and more inclusive composition of domestic demand is of the first importance

 

There is an ongoing debate about whether the current slowdown reflects a demand- or supply-constrained economy. Analytically, this question is pertinent …

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 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 …

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 …

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 …