What is really happening in Indian Manufacturing? C.P. Chandrasekhar & Jayati Ghosh

Data on organised manufacturing production do not really capture the impact of demonetisation and its effects on demand, but looking at some sub-sectors of consumer non-durable goods provides more insight. Indian_Manufacturing (Download the full text in PDF format) (This article was originally published in the Business Line on August 14, 2017.)

‘Riskless Capitalism’ in India: Bank credit and economic activity Rohit Azad, Prasenjit Bose and Zico Dasgupta

The Indian growth story of the 2000s’ cannot be over-simplistically explained as a result of “market-oriented” reforms. Public sector bank credit-financed investments, particularly in the infrastructure sector, played a significant role in sustaining growth, most crucially after the global economic crisis. Such a growth trajectory, however, proved to be unsustainable with the expansionary phase coming to an end in 2011–12 and bad loans piling up in the banking system. Riskless_Capitalism  (Download the full text in PDF format) This article was originally posted in Economic & Political Weekly on August 5, 2017.

Growth in the Time of a Credit Squeeze C.P. Chandrasekhar and Jayati Ghosh

GDP growth figures for the last few years have camouflaged a deceleration in credit growth that has affected all but the retail loans segment quite adversely. Credit_Squeeze (Download the full text in PDF format) (This article was originally published in the Business Line on July 31, 2017.)

Demography and care in Europe: The impact of social relations C.P. Chandrashekhar and Jayati Ghosh

Trends in social relations are both affected by and impact upon economic changes. These in turn have an important bearing on desirable patterns of spending in the care economy, as suggested by an examination of recent marital trends in Europe. Demography_Europe (Download the full text in PDF format) ( This article was originally published in the Business Line on July 17, 2017.)

China’s Labour Market Conundrum C.P. Chandrasekhar and Jayati Ghosh

Has China's labour market reached a point where long years of high growth have led to demand outstripping supply, resulting in a sharp rise in wages? China_Labour (Download the full text in PDF format) (This article was originally published in the Business Line on July 4, 2017.)

Brexit and the Economics of Political Change in Developed Countries Jayati Ghosh

The economic forces underlying Brexit—and the election of Donald Trump in the US—are similar, but also well advanced in many European countries, where much of the population faces similar material insecurity and stagnation. These frustrations can easily be channelled by right-wing xenophobic forces. To combat this, the EU needs to undo some of its design flaws and move from austerity to a more flexible union based on the solidarity of its people. Brexit (Download the full text in PDF format) (This article was originally posted in the Taylor and Francis online on June 2, 2017)

The Age of Anxiety: The crisis of liberal democracy in a post-hegemonic global order Ziya Onis

The crisis of liberal democracy has been accelerated by the global financial crisis of 2008 with its dislocating effects in the established democracies. Relative stagnation and rising inequality and unemployment, coupled with mass migration and terrorist attacks, have instigated the rise of right-wing radical populist sentiments. As Western powers lose their influence, liberal democracy is challenged by the rise of strategic models of authoritarian or hybrid capitalism in a changing global context. Age_of_Anxiety (Download the full text in PDF format)

The Unsustainable US Recovery C. P. Chandrasekha and Jayati Ghosh

Even the limited and unsteady recovery of growth in the US a decade after the 2008 crisis is based on an increase in debt that renders it unsustainable. Unsustainable_US_recovery (Download the full text in PDF format) (This article was originally published in the Business Line on June 5, 2017)

Break up the Banks: A practical guide to stopping the next global financial meltdown Andrew Cornford

Banking reforms to regulate the financial sector have broadly remained inadequate. In the book reviewed, Shirreff proposes the legal separation of banking activities into three groups, a return to unlimited liability for partners in investment banks and caps on total remuneration as the radical and effective steps needed to stabilise the sector. He also favours scrapping of Basel I and II norms and the application of a financial transaction tax. The global applicability and acceptance of these proposals, however, remains uncertain. Break_Up_Banks (Download the full text in PDF format)