Who Should Control India’s Central Bank? Jayati Ghosh

The standoff between India's government and the Reserve Bank of India isn't problematic because of the risk of infringing on central-bank independence. It is problematic because, rather than fighting to protect the public interest, the government's goal is to revive irresponsible bank lending, protect its cronies, and win votes. For full article click here (This article was originally published in the Project Syndicate on November 12, 2018)

A Heart-Rending Episode Prabhat Patnaik

This year marks the seventy-fifth anniversary of the Bengal famine of 1943, a heart-rending episode in which 3 million persons died, and which epitomized the callousness of imperialism. The scale of devastation can be understood if we remember that in the United Kingdom, taking civilian and military casualties together, the total loss of life during the entire Second World War was just 0.45 million and in the U.S. 0.42 million. In Germany itself the loss has been estimated as anywhere between 6.6 and 8.8 million and in the Soviet Union which suffered the most at around 24 million. To say…

India’s wealthy barely pay taxes C. P. Chandrasekhar and Jayati Ghosh

India is often mistakenly seen as a country with relatively low economic inequality. In fact, there were always very significant economic inequalities in India, which intersected with social and locational inequalities in complex ways. More significantly, the country’s inequalities widened after the internal and external economic liberalization measures from the early 1990s, which attracted global financial investors and boosted economic growth considerably. The estimates of low inequality are usually based on the fact that the Gini coefficients of consumption expenditure have not been so high in India (although they have increased over time). The National Sample Survey data on which…

Subverting The Central Bank Prabhat Patnaik

The Modi government’s penchant for subverting institutions has now extended to the Central Bank of the country. Not content with eliminating the Planning Commission; decimating the finest universities in India; crippling the premier public sector unit of the country, the ONGC, by interfering in its decision making; bringing the nationalized banks to grief by nudging them into sanctioning dubious loans; making a mockery of the Central Bureau of Investigation through crony appointments; and destroying the statistical system built up diligently by P.C.Mahalanobis which was the envy of  countries across the world; it has now turned its attention to the Reserve…

The Left and Opposition Unity Prabhat Patnaik

The real obstacle to understanding, or even recognizing, contemporary fascism alas is the memory of the 1930s. The fact that we have fascists in power in India, at the helm of a liberal bourgeois State, is indubitable: the RSS, which they belong to and swear by, has made no secret of its admiration for classical fascism. But we do not have a classical fascist State, and are not moving towards it at break-neck speed, as the Nazis in power had effected. This is what makes many people question whether we are at all confronting fascism. From the prism of the…

Can the RBI’s open market operations help the rupee? C. P. Chandrasekhar and Jayati Ghosh

The recent depreciation of the rupee has created consternation among those who need to buy foreign exchange. It has also caused panic in the stock markets, whose decline partly reflects the exit of foreign investors, which contributes to the rupee’s fall. It spells further trouble for companies that borrowed heavily in foreign currency, encouraged by lower interest rates abroad. It adds to domestic inflationary pressures that were already rising with higher global oil prices, which have been mostly passed on to domestic consumers. While the recent slide in the rupee’s value is particularly steep, it is part of a longer…

Ayushman Bharat Prabhat Patnaik

The fraudulence of the claim made by the Modi government with regard to the “Ayushman Bharat” scheme launched recently surpasses all its previous efforts. This is hardly surprising for a government for which what matters is not what it actually does but how it creates perceptions about what it is doing. The Ayushman Bharat scheme consists of two separate parts. One is the creation of 150000 “Health and Wellness Centres” which are simply the old primary health centres given a new fancy name, and for each of which the 2018-19 Union budget allocates a mere Rs.80000. This obviously cannot even…

Trade Wars of United States Biswajit Dhar

In the past few months, President Donald Trump has authorised a series of protectionist measures, the likes of which have not been seen in the postwar decades. The first salvo was fired in early March 2018, with the imposition of tariffs on imports of steel and aluminium from all countries except its immediate neighbors, Canada and Mexico. The President of the United States (US) then turned his attention to China, announcing that relatively high tariffs would be imposed to counter, what he perceived was “unfair” trade practiced by the second largest economy. Both acts of protectionism were promptly responded to…

The Fall Of The Rupee Prabhat Patnaik

The rupee’s current tendency to fall is hardly surprising. India’s growth experience, unlike China’s, was built on the quicksand of a more or less persistent trade and current account deficit on the balance of payments. But there was always enough financial inflow not just to cover the current account deficit but even to add to our foreign exchange reserves. Initially this inflow was stimulated by the sheer fact of the economy’s being opened up to such flows: wealth-holders abroad got a chance to diversify their portfolios by buying into hitherto- unavailable Indian assets. Later, the higher interest rates in India…