An autonomous research institute under the Ministry of Finance

 

“Shell”tering money

10/02/2017

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The versatile shell companies serve not just as vehicles for corporate tax dodging but have also been used by the rich to get around paying hefty alimony payments. The existence of shell companies is not recent and its rather innocuous beginnings can be traced back to 1960s when Walt Disney ...


Global Economic Developments

18/01/2017

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The United States Federal Reserve’s (US Fed) decision to raise interest rates by 25 basis points could have a significant impact on global economic growth. The Fed has decided to go “hawkish” this quarter and Fed Chief Janet Yellen’s commentary on future rates hikes has led to negative reaction in ...


Compelling Fiscal-Monetary Policy Linkages in the Event of Demonetisation

23/12/2016

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The demonetisation of 500 and 1000 rupee notes was announced by the Prime Minister on November 8, 2016; since then, there has been a growing interest in understanding fiscal-monetary policy linkages. This article revisits these compelling policy linkages. Increasingly, there is an alarming tendency of segregating the monetary and fiscal ...


Fiscal Consolidation, Budget Deficits and the Macro Economy

19/12/2016

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The 2016 book titled “Fiscal Consolidation, Budget Deficits and the Macro Economy”, by Lekha Chakraborty,  is a welcome addition to the growing literature that deals with fiscal policy in specific countries, focusing on the longer run and on fiscal consolidation, rather than on a short run and countercyclical perspective. The ...

Understanding the rash for cash: Evidence from weekly money supply data

10/12/2016

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Four weeks have passed since the announcement by Prime Minister Narendra Modi on the November 8, 2016 to demonetise currencies of denomination Rs 500 and Rs 1000. Till now, most of the ATMs across the country are in non-functioning mode. There are serpentine queues in front of banks and the ...