An autonomous research institute under the Ministry of Finance

 

Coherent set of immediate actions

16/10/2019

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 credit policy transmission needs ...

Paying Attention to Tax Buoyancy

15/10/2019

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(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 increase the ...

Fiscal Monetary Policy Co-ordination:It is worth a relook at what Subir Gokarn said in 2013 RBI report of currency and finance

15/10/2019

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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 Reserve ...

Fiscal Space before the New Government in Karnataka

21/08/2019

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(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 enacted in 2002 ...

India needs a ‘care economy’ policy

21/08/2019

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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 the ...