On taking sides in the RBI-Government stand-off C. P. Chandrasekhar

Unlike in the worlds of business and politics, there is little scope for gossip in the world of economics. So, when multiple signals suggested that that there was a stand-off between the government and the Reserve Bank of India (RBI), the media made the most of it, with a multitude of stories reporting and explaining the nature of the spat and its implications. Given the formal economic arguments that must enter those discussions, there is much that the lay reader cannot process to assess which of the two institutions is right in this controversy. However, the thrust of the reportage…

Debunking the “Index of Economic Freedom” John Miller

For the first time in the 11 years that the Heritage Foundation and The Wall Street Journal have been publishing the Index of Economic Freedom, the U.S. has dropped out of the top 10 freest economies in the world. . Policy makers who pay lip service to fighting poverty would do well to grasp the link between economic freedom and prosperity. This year the Index finds that the freest economies have a per-capita income of $29,219, more than twice that of the "mostly free" at $12,839, and more than four times that of the "mostly unfree." Put simply, misery has…

US Economic Recovery and the Unemployment Drag Sukanya Bose

The recent recession in the US economy has produced one of the longest lasting declines in employment growth.  The paper examines why the substantial increases in government military spending have been insufficient in stimulating a revival of employment. The reasons for the low responsiveness of private business spending and hence employment are then explored. US_Economic_Recovery (Download the full text in PDF format)

Review of the 2004 World Development Report “Making Services Work for Poor People” Tim Kessler

On September 21, 2003, the World Bank unveiled its annual flagship publication, the 2004 World Development Report, entitled "Making Services Work for Poor People." The WDR's main premise is that basic services - primary education, basic health care, water and electricity services -fail to reach the poor because too many governments lack sound and representative institutions of governance. Ironically, the report expresses strong confidence in the ability of these same unaccountable governments to regulate private service provision. In addition to deficient institutions, the WDR attributes failing public services to regressive budgets (that benefit mostly the middle class), petty corruption, and…