IDEAS home Printed from https://ideas.repec.org/p/ind/igiwpp/2010-025.html
   My bibliography  Save this paper

India's fiscal and monetary framework: growth in an opening economy

Author

Listed:
  • Ashima Goyal

    () (Indira Gandhi Institute of Development Research)

Abstract

Since a crisis is a shock impinging on a system, the response can be used to deduce aspects of the system's structure. Analysis of the crisis and recovery suggests aggregate supply in India is elastic but subject to upward shocks. This has implications for the exit and for fiscal consolidation. Both monetary and fiscal policy should identify measures that would reduce costs, while preventing too large a demand contraction. Specific policies are identified and Indian policies evaluated.

Suggested Citation

  • Ashima Goyal, 2010. "India's fiscal and monetary framework: growth in an opening economy," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2010-025, Indira Gandhi Institute of Development Research, Mumbai, India.
  • Handle: RePEc:ind:igiwpp:2010-025
    as

    Download full text from publisher

    File URL: http://www.igidr.ac.in/pdf/publication/WP-2010-025.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ashima Goyal, 2010. "Regulatory Structure for Financial Stability and Development," Working Papers id:2458, eSocialSciences.
    2. Partha Sen, 2007. "Capital inflows, financial repression, and macroeconomic policy in India since the reforms," Oxford Review of Economic Policy, Oxford University Press, vol. 23(2), pages 292-310, Summer.
    3. Rana Ejaz Ali Khan & Qazi Muhammad Adnan Hye, 2013. "Financial liberalization and demand for money: a case of Pakistan," Journal of Developing Areas, Tennessee State University, College of Business, vol. 47(2), pages 175-198, July-Dece.
    4. Ashima Goyal, 2009. "Global Financial Architecture: Past and Present Arguments, Advice, Action," Working Papers id:2130, eSocialSciences.
    5. Ashima Goyal, 2008. "The Structure of inflation, information and labour markets: Implications for monetary policy," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-010, Indira Gandhi Institute of Development Research, Mumbai, India.
    6. Caballero, Ricardo J. & Krishnamurthy, Arvind, 2004. "Smoothing sudden stops," Journal of Economic Theory, Elsevier, vol. 119(1), pages 104-127, November.
    7. Ashima Goyal, 2005. "Incentives from exchange rate regimes in an institutional context," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2005-002, Indira Gandhi Institute of Development Research, Mumbai, India.
    8. Jonathan David Ostry & Atish R. Ghosh & Karl F Habermeier & Marcos Chamon & Mahvash S Qureshi & Dennis B. S. Reinhardt, 2010. "Capital Inflows; The Role of Controls," IMF Staff Position Notes 2010/04, International Monetary Fund.
    9. Masahiro Kawai, 2010. "Reform of the International Financial Architecture: An Asian Perspective," Working Papers id:3066, eSocialSciences.
    10. Kawai, Masahiro, 2009. "Reform of the International Financial Architecture: An Asian Perspective," ADBI Working Papers 167, Asian Development Bank Institute.
    11. Menzie D. Chinn & Hiro Ito, 2002. "Capital Account Liberalization, Institutions and Financial Development: Cross Country Evidence," NBER Working Papers 8967, National Bureau of Economic Research, Inc.
    12. repec:wsi:serxxx:v:55:y:2010:i:01:n:s0217590810003675 is not listed on IDEAS
    13. S. Narayan, 2009. "India," Chapters,in: The Political Economy of Trade Reform in Emerging Markets, chapter 7 Edward Elgar Publishing.
    14. Ashima Goyal, 2006. "Regulation and Deregulation of the Stock Market in India," Chapters,in: Deregulation and its Discontents, chapter 9 Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. B.Sudhakara Reddy, 2016. "Picking the Winner: Measuring Urban Sustainability in India," Working Papers id:11262, eSocialSciences.
    2. Raymond P. Guiteras & Ahmed Mushfiq Mobarak, 2015. "Does Development Aid Undermine Political Accountability? Leader and Constituent Responses to a Large-Scale Intervention," NBER Working Papers 21434, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Crisis; fiscal and monetary policy; exit; aggregate supply elasticity;

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ind:igiwpp:2010-025. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamprasad M. Pujar). General contact details of provider: http://edirc.repec.org/data/igidrin.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.