New issues in Indian macro policy
For many decades, macro-policy in India was conducted in an environment with five key elements: Agricultural shocks rather than a conventional business cycle; A closed economy; deeply distortionary tax policy coupled with a fiscal crisis; financial markets that lacked speculative price discovery, and a monetary policy which was shaped by deficit financing. The paper argues that India has changed beyond recognition on all these five elements and that these changes have far-reaching consequences for the conduct of macroeconomic policy. India is now a more conventional market economy, and there is a much bigger role for the great themes of macroeconomics - as it is practised elsewhere in the world - in shaping Indian macro policy. [NIPFP-WP]
References listed on IDEAS
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- Elena Glinskaya & Michael Lokshin, 2007.
"Wage differentials between the public and private sectors in India,"
Journal of International Development,
John Wiley & Sons, Ltd., vol. 19(3), pages 333-355.
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- Vijay Joshi, 2003. "India and the Impossible Trinity," The World Economy, Wiley Blackwell, vol. 26(4), pages 555-583, April. Full references (including those not matched with items on IDEAS)