19 results found

What Ails GDP Growth: Demonetization or High Interest Rates?

GDP Growth in India has slowed down to less than 7%, from the recent high level of 8.2% in 2015-16. It is widely believed that the demonetization experiment, announced by Prime Minister Modi on November 8, 2016, is responsible for...

It’s interest rates, stupid

Inflation is down by 700 bp since 2013, and policy rates have declined by 200bp — and you are still wondering why GDP growth is slow?

Smart Policies for Redistribution

India can, and must, reform its welfare system for a transforming India – more efficient redistribution is desirable for both ethical, and political, reasons.

Tax-fruits of demonetisation

A direct outcome of demonetisation is a sharp increase in 2017-18 in tax buoyancy (revenues per unit of growth). Given this ‘unexpected’ result, will the knee-jerk critics of demonetisation please stand down?

Gujarat 2017, lessons for all

This election was the first since slow economic growth was apparent and in the data. A slow economy, however, was not the only factor — after all, in Himachal Pradesh, the BJP won by a large margin.

Making RBI accountable

The first year of operation of the Monetary Policy Committee has imposed considerable costs on the economy with very few benefits. What explains its decisions?

Dead parrots tell no tales

A forthcoming book explains that inflation, which haunted the world in the Seventies and the Eighties, is now only a windmill to be tilted at

Demonetisation and its contents

It was about both politics and economics. It is an acknowledged political success and early ‘returns’ indicate an economic success story as well.

Looking for honesty in the wrong places

We all have a choice — we can either debate evidence, or manufacture conclusions

Madness in monetary policy

In India we have a monetary authority that admits to not understanding inflation — but persists in damaging an already weak economy because it does not understand it