Who’s Afraid of the Fiscal Deficit? Jayati Ghosh

The ongoing review of the Fiscal Responsibility and Budget Management Act 2003, by a Committee set up by the central government, has once again brought to the fore the vexed question of whether limits should be set by law to the government’s fiscal practices. More particularly, the issue being considered is whether the rigid fiscal deficit and current deficit targets set by the FRBMA are either meaningful or desirable in the contemporary economic environment. There are many reasons to be willing to reconsider the FRBMA. While strict rules for limits on public debt and the fiscal deficit (either in absolute…

Trapped in a Recession C.P. Chandrasekhar

When the recently held annual meetings of the IMF and the World Bank ended, the only news to report was that confusion and disagreement afflicts the leaders and institutions charged with jointly managing the international economy. The absence of certainty and agreement was specially visible with respect to one issue: whether governments should revert to using fiscal policy measures and not just monetary policy initiatives to revive a global economy poised to slip into another deep recession. Years of “quantitative easing’ or injection of liquidity into the system through bond purchases by the US Fed, and similar moves elsewhere in…

Employment Generation as an Economic Strategy for Uncertain Times Jayati Ghosh

It is truly a great honour for me to receive this award, and I am especially deeply honoured to be part of the broader agenda that the ILO has been pursuing, which I believe is especially critical in the current fragile global economic environment. I believe that the ILO can make an important contribution to a new direction, based on the generation of decent work as the fundamental goal, which can even become a game-changing approach to macroeconomic strategy. Any formulation of economic strategy for our times must rest on some increasingly evident current realities: periods of ''rapid growth'' have…

What World Leaders Need to Do Urgently (but are not) Jayati Ghosh

During the height of the Global Financial Crisis in 2008, President Nicolas Sarkozy of France was seen carrying around a copy of ''Capital'' by Karl Marx. Maybe he should now pick up a copy of another book (''Anti-Duhring'') by Marx's collaborator Friedrich Engels. In this book Engels made a persuasive argument about the anarchic nature of capitalism. ''Anarchy reigns in socialised production. But the production of commodities, like every other form of production, has its peculiar, inherent laws inseparable from it; and these laws work, despite anarchy, in and through anarchy. They reveal themselves in the only persistent form of…

Game Over for the Euro? Sergio Cesaratto

The author talks in detail about the crisis in Europe, with special reference to the problems of Italy. The problem of public debt in Italy has been a long standing one, the origin of which lies in the series of economic developments that took place in the country over few decades. He also argues that the present crisis cannot be resolved unless bigger countries like Germany do not shift from their dogmatic position. Game_over_Euro (Download the full text in PDF format)  

Tottering on the Brink Jayati Ghosh

What is it with women and high heeled shoes? Such shoes are known to be uncomfortable, unhealthy and even dangerous for those wearing them. Not only do they force the wearer's feet and body into unnatural positions, they are hard to stand or walk around in for any extended time, and prolonged use can lead to damage of internal reproductive organs. Despite what appear to be these rather obvious drawbacks, they still dominate in high-fashion female footwear – to the point where the higher the heels, the more expensive and fashionable the shoes are likely to be. They remain popular…

The Spectre of Public Debt C.P. Chandrasekhar

Pegging their arguments on the still-ongoing drama relating to sovereign debt in Greece, conservative opinion is making a case for a reduction of the size of public debt in developed and developing countries across the world. The latest signatory to the appeal is IMF chief Dominique Strauss-Kahn who reportedly told an audience at the inaugural conference of the Soros-funded (Financial Times, 10 April 2010) Institute for New Economic Thinking that public debt in the advanced economies is forecast to rise by about 35 percentage points on average, to about 110 per cent of gross domestic product in 2014. In his…

From Liberalization to Investment and Jobs: Lost in tsssranslation Yilmaz Akyüz

This paper discusses the experience of late industrializers in harnessing profits through industrial-cum-investment policies for faster accumulation. It is found that the performance of a large number of developing countries which have adopted a strategy of reigniting a dynamic process of capital accumulation and growth through a combination of rapid liberalization, increased reliance on foreign capital and reduced public investment and policy intervention is highly disappointing. The paper also examines the impact of macroeconomic and financial policies on accumulation, employment and growth, and concludes with a discussion of policy priorities. lost_translation (Download the full text in PDF format)

Japanese Economic Recovery and the Macroeconomic Policy Mix Sukanya Bose

Japanese macroeconomic policy during the prolonged depression of the 1990s has been the reverse of what Keynes had recommended as the anti-deflationary strategy. The paper explores the three main pillars of macroeconomic policy for the Japanese economy in the recent years: financial policy, fiscal policy and monetary policy. japanese_recovery (Download the full text in PDF format)

Argentina Since Default: The IMF and the depression Alan B. Cibils, Mark Weisbrot and Debayani Kar

More than eight months since the economic crisis has passed and Argentina's economy continues to decline, with the recession now having lasted more than four years. This paper looks at Argentina's crisis since the default in an attempt to find a way out of the Depression. argentina_default (Download the full text in PDF format)

  • 1
  • 2