Did developing countries really recover from the Global Crisis? C. P. Chandrasekhar and Jayati Ghosh

We are nearing the tenth anniversary of the collapse of Lehman Brothers in the United States that sparked a Global Financial Crisis,affecting every economy in significant ways. That crisis generated extraordinary monetary policy responses in the advanced economies, with low interest rates and unprecedented expansion of liquidity, in an effort largely driven by central banks to keep their economies afloat. By contrast, expansionary fiscal policy was barely used after the first initial stimulus. In the event, even with these incredibly loose monetary policies, the advanced economies have generally spluttered along, with periodic hopes of recovery dashed by repeated slowdowns –…

A Legacy of Vulnerability C. P. Chandrasekhar and Jayati Ghosh

Recent months have been marked by an exit of foreign investors from India’s financial markets, triggered by the end of quantitative easing in the US and Europe and hikes in policy interest rates in the former. This has resulted over the last few weeks in a sharp depreciation of the rupee relative to the dollar, which not only raises the rupee costs of imports, but also the rupee equivalent of payments made to service foreign debt. That has meant that India is now paying the price for a legacy of debt built up during the years when the Federal Reserve…

Handbook of Alternative Theories of Economic Development Edited by : Erik S. Reinert, Jayati Ghosh and Rainer Kattel

The Handbook of Alternative Theories of Economic Development explores the theories and approaches which, over a prolonged period of time, have existed as viable alternatives to today’s mainstream and neo-classical tenets. With a total of 40 specially commissioned chapters, written by the foremost authorities in their respective fields, this volume represents a landmark in the field of economic development. It elucidates the richness of the alternative and sometimes misunderstood ideas which, in different historical contexts, have proved to be vital to the improvement of the human condition.   For more click >> Handbook (Download the full text in PDF format)

Handbook Of Alternative Theories Of Economic Development Edited By : Erik S. Reinert, Jayati Ghosh And Rainer Kattel

The Misplaced Growth Discourse C. P. Chandrasekhar and Jayati Ghosh

With the GDP estimates for the fourth quarter of 2017-18 placing growth relative to the corresponding quarter of the previous year at 7.7 per cent, talk of India being the world’s fastest growing economy has revived. Moreover, since the year-on-year quarterly growth rates have risen from 5.6 per cent in the first quarter of 2017-18 to 6.3, 7.0 and 7.7 per cent in the subsequent three-quarters, there is talk that India is once more on a trajectory of accelerating growth (Chart 1). However, the story emerging from the provisional annual figures (which are also now available) is at variance with…

Once again, the Oil Price Scare C. P. Chandrasekhar and Jayati Ghosh

The news last week that prices of Brent Crude oil (which is used as a global benchmark) had crossed $80 a barrel in some markets must have created shock waves in policy circles of many countries, especially India. Many oil-importing countries had grown comfortable with – and even complacent about – the relatively low oil prices that persisted after their precipitous drop in the middle of 2014. As Chart 1 shows, average oil prices feel very sharply after June 2014, falling by 56 per cent just in the months until January 2015, and by more than 70 per cent from…

The Banking Conundrum: Non-performing assets and neo-liberal reform C.P. Chandrasekhar and Jayati Ghosh

As fiscal year 2017–18 drew to a close, the Government of India decided to bite the bullet and implement a proposal to “resolve” what was being presented as one of the leading challenges then facing the Indian economy: large non-performing assets (NPAs) on the books of the banks, especially the public sector banks (PSBs).The Recapitalisation plan, first announced in October 2017, involved infusing ‘2.11 lakh crore of new equity into the PSBs, of which ‘1,35,000 crore would be new money from the government, financed with recapitalisation bonds. Another ‘18,139 crore was the balance due under the ‘70,000 crore Indradhanush plan…

The return of a Housing Bubble C. P. Chandrasekhar and Jayati Ghosh

Even while optimistic assessments of growth trends in the global economy proliferate, concerns that the unwinding of inflated asset price markets could abort the recovery are being expressed. Interestingly, there appears to be a substantial degree of agreement on the cause for such uncertainty, which is an excessive dependence on monetary measures in the form of quantitative easing and the associated extremely low interest rate environment to address the post-crisis recession. That lever was not the most effective from the point of view of lifting growth. While the early resort to fiscal stimuli delivered a sharp recovery, the retreat from…

Ashok Mitra, a Man who was Equally Committed Politically and Personally Jayati Ghosh

For those who were victimised or isolated for dissident views, of whatever description, there was a special place in Ashok Mitra's heart. (The Bengali version of this article is being published in Arek Rakam, a journal that Ashok Mitra helped set up as its first editor.) It is a privilege to be able to write about Ashok Mitra in the journal that was probably the last love of his life. In a way, the very existence of Arek Rakam describes much about the man himself and his extraordinary capacities. Think of someone already into his ninth decade, having the enthusiasm and energy to…

A Singular Person Jayati Ghosh

There are some people who are hard to classify, in terms of achievement or contribution to society or personality, and Ashok Mitra is one of them. Economist, policymaker, writer, organic intellectual, politician, litterateur, legislator: he has been all of these at different times, and often several of them together. In a remarkable life spanning nearly nine decades, he has also shown an amazing ability to integrate the personal and the political, the individual and the social, and the emotional and the rational in ways that express both the contradictions and the sublimity of being truly human. But even among these…

Former Bengal Finance Minister was a polymath member of significant groups Jayati Ghosh

Ashok Mitra was one of the most remarkable personalities of Independent India. A polymath who spanned technical economics, literature, policy and politics, he brought to all of these his distinctive flair, razor-sharp intelligence, and enormous energy and passion. His death — in Kolkata on Tuesday after almost a month’s stay in hospital for diarrhoea and later respiratory problems — marks the end of multiple eras, as he was the last surviving member of several significant groups: the influential progressive economists who in the 1950s laid the groundwork for economic strategies of the subsequent decades; the founder trustees of the Economic Weekly (later Economic…