People’s Quantitative Easing: A Jeremy Corbyn proposal T. Sabri Oncu

Views that PQE proposal violates the separation of monetary and fiscal policies and removes the fiscal discipline have provoked debates that the policy makers of the developing countries should concentrate on. peoples_quantitative  (Download the full text in PDF format) (This article was originally posted in the Economic and Political Weekly, Vol - L No. 41, October 10, 2015.)  

Dispute Settlement in International Investment Agreements and the Rules of an Indian Model Bilateral Investment Treaty Andrew Cornford

Coverage and procedures for dispute settlement in international agreements on investment and trade are proving increasingly controversial. The current controversy reflects contentious issues in two ongoing multilateral negotiations, on the TPP (Trans Pacific Partnership) and TTIP (Transatlantic Trade and Investment Partnership). The targets of contention include provisions designed to achieve regulatory convergence among the participants in the negotiations regarding subjects such as environmental regulation and intellectual property rights. Moreover the rules agreed under these agreements will increase the scope for private investors to bring suits against governments for future losses imputed to changes in regulation and other official actions under…

The Devaluation of the Yuan Prabhat Patnaik

The Chinese central bank’s decision last week to let the yuan depreciate in three stages by almost 4 percent against the U.S. dollar, was officially explained as a move towards greater market determination of its exchange rate. Though this explanation pacified stock markets around the world, China’s devaluation of the currency portends a serious accentuation of the world capitalist crisis. To see this devaluation in its proper context, we have to remember that the Trade Weighted Exchange Rate (TWER) of the yuan (i.e. its exchange rate against a basket of currencies whose composition is determined by the importance of that…

China’s Stock Market Collapse Jayati Ghosh

The recent rout in the Chinese stock market – and the Chinese authorities' increasingly panicky responses to it that temporarily halted the decline – may not seem all that important to some observers. Indeed, there are analysts who have said that this is just the typical behaviour of a still immature stock market that is still “froth” in the wider scheme of things, and not so significant for real economic processes in China. After all, the Chinese economy is still much more state-controlled than most, the main banks are still state-owned and stock market capitalization relative to GDP is still…

The Spectre of the Thirties Prabhat Patnaik

The Reserve Bank of India, as is to be expected, has been denying that its Governor Raghuram Rajan had ever suggested that the world was facing the possibility of a 1930s-type Great Depression. Members of the “global financial community” are not supposed to say such things; so even if Dr. Rajan did, a denial was inevitable. The point however is not whether Rajan actually said this. The point is not even whether the world would actually slip into a 1930s-type depression. The point is whether the issues raised by Rajan at the event organized in London were valid and significant.…

Economic Forecasts and Reality: Should we believe the World Bank? C.P. ChandrasekhaR & Jayati Ghosh

The World Bank’s latest projections for GDP growth are pessimistic, especially for developing countries. But given its poor track record, how far they are reliable is doubtful. economic_forecasts_reality (Download the full text in PDF format) (This article was originally published in the Business Line print edition dated June 23, 2015  )