India’s Fiscal and Monetary Framework: Growth in An Opening Economy

Published By: IGIDR on eSS | Published Date: December, 01 , 2010

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. [WP-2010-025]

Author(s): Ashima Goyal | Posted on: Feb 01, 2011 | Views(893) | Download (169)

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