C. P. Chandrasekhar Given the obsession to limit the dressed up fiscal deficit figure and unable to think of better responses to the growth slowdown than tax cuts, it is more than likely that better economic management and ways to address the intensifying stagflation would not...
Article Shared by The following points highlight the top four types of Hypothesis in Consumption. The types of Hypothesis are: 1. The Post-Keynesian Developments 2. The Relative Income Hypothesis 3. The Life-Cycle Hypothesis 4. The Permanent Income Hypothesis. Hypothesis Type # 1. The Post-Keynesian Developments: Data collected and...
C. P. Chandrasekhar and Jayati Ghosh It’s that time of year again, when people start talking about what the Union Budget may bring in the shape of fiscal policy changes and what it will show about public finances in the previous year. But increasingly, such discussion...
Armando Negrete The world economy is marked by the imprint of US foreign policy. Over the last three months of the year, the United States has reactivated its political and economic interventionism in Latin America; blocked the operation of the World Trade Organization; and violated the...
Article Shared by Distribution and Theories of Distribution! Introduction and Definition: ‘Distribution’ refers to the sharing of the wealth that is produced among the different factors of production. In the modern time, the production of goods and services is a joint operation. All the different factors of production i.e.,...
Article Shared by In this article we will discuss about Separation of Substitution and Income Effects from the Price Effect. The Hicksian Method: Hicks has separated the substitution effect and the income effect from the price effect through compensating variation in income by changing the relative price of...
Vladimir Popov and Jomo Kwame Sundaram One mercantilist view is that exchange rate undervaluation – e.g., via accumulation of foreign exchange reserves in China’s case – is ‘industrial policy’ to promote export-led growth, benefiting producers of exports while discouraging imports. Taxes and subsidies are tools of selective industrial policy...
Jayati Ghosh Here’s what we do know: the Indian economy is in a deep funk, in a downward spiral of falling employment, consumption, and investment, and rapidly decelerating GDP growth. The problem, evident for several years now, has been created by a collapse in consumer demand,...
C. P. Chandrasekhar In the search for resources to make up for sluggish tax revenue growth, one source to which the Finance Minister rising to present Budget 20201 can legitimately turn is the Reserve Bank of India (RBI). But the government’s draft on RBI funds cannot...
Article Shared by The below mentioned article provides a close view on the CES Production Function. Arrow, Chenery, Minhas and Solow in their new famous paper of 1961 developed the Constant Elasticity of Substitution (CES) function. This function consists of three variables Q, С and L, and...