It is important to shift, in a phased manner, to a good and general policy framework from a situation of a plethora of schemes
At present, an important reason for the large leeway around the inflation target lies in the behaviour of the prices of oil and food, which can push prices more generally
The idea that fiscal prudence and welfare of the less well-off are mutually exclusive is misplaced
Monetary base issued by the Fed had jumped from less than $1 trn before the GFC to more than $3 trn by early 2020 and then to about $5 trn by end of the year. But inflation has hardly gone up. Why?
It is best to avoid "jhatka" economics, carry out incremental reforms on a continuous basis and do so in a number of sectors and regions.
Extraordinary times call for extraordinary measures! This can mean a large deficit or the use of re-allocative and redistributive fiscal policies on a larger scale. Or, we can have a mix
While the low interest rate policy may or may not help with investment, output and employment, it can aggravate, if not cause, financial instability
It is true that though both low spirits and low real investment may be caused by a common set of economic factors
More often than not a dollar deluge is primarily due to a sudden and large capital inflow, and not a compression of imports
Though SGBs were launched in November 2015, almost 35 per cent of the amount mobilised is in the current financial year
The first thing that comes to mind is that there is a need to amend the Land Acquisition Act, 2013, and other such laws
In recapitalising public sector banks by borrowing from banks themselves rather than from market, the govt is violating the spirit of Basel capital adequacy norms
Government will not gain if demonetisation succeeds in curbing black money
Scrapping high-value currency notes is unlikely to make a major dent in the black money problem unless accompanied by structural reforms in the rest of the economy