Once the nationwide lockdown is eased, initial supply chain disruptions might impart cost push inflation while on the other hand, lack of demand (except for the essentials) due to lost income would force the aggregate price level to stay low.
Informal Sector in Despair Due to the Corona Pandemic: Time to Call Upon Our Central Planner?
Published on :Now, in a nation where nearly 80% of the labourforce is employed in the informal sector, it is hard to believe that government didn’t take stock of these workers’ consumption smoothening patterns and if it really did, maybe it’s time to call upon our central planner: the government!
Endogenous Growth Theory Serving Lessons for India: Education Budget 2020
Published on :The education budget was presented under the umbrella of an ‘aspirational India’ theme. The theme itself kept me wondering if it just meant a meagerly increased spending and a few ‘new’ schemes like always, or did it really mean a stronger emphasis on ‘quality of education’.
Amidst the Growth Slowdown- Why We Need to Talk About a ‘Credible’ Finance Ministry
Published on :While the finance ministry tries to address the slowdown by spending beyond what their pockets allow, it must not forget to ensure that the numbers are credible over the medium term. Moreover, it’s time we discuss about the credibility of finance ministry as much as we bat for a credible central bank.
Which Lever to Pull- Monetary or Fiscal?
Published on :The simplified bottom line is here. While slow growth with high inflation suggests supply side rigidities, slow growth with inflation below target suggests demand weakness.