With the aid of simple theoretical tools used in classroom lectures, the implications of the recent “demonetisation” exercise in India are analysed. It lends support to conclusions reached by other authors on the impact of demonetisation with the aid of available data. Following Robert Lucas’s Nobel lecture, the merits of economic policies that assume the form of random shocks to an economic system are questioned.
This article critically evaluates the government's pricing policy for petroleum products in India. It looks carefully at the notion of "under-recoveries" oil companies and attempts to compare it with their profi ts under an alternative pricing regime. It concludes that under the suggested pricing structure the surplus generated in the oil sector will be suffi ciently large to wipe out the much advertised fi scal defi cit sustained by the government on account of oil subsidies - without raising the price of the essential oil products. The analysis is carried out with reference to 2011-12 data.
A dedicated teacher, not just well versed with economic theory but also with modern English literature, mathematics and classical music, Dipak Banerjee will be remembered as one of the most erudite professors of Presidency College, Kolkata.
This paper offers analytical description of the economic performance of Indian states as reflected in their per capita (net) state domestic product. Statistical analysis of data for the period 1960-61 to 1995-96 shows a clear tendency for Indian states to diverge in per capita SDP, but converge in shares of different sectors in the SDP.