ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Deena KhatkhateSubscribe to Deena Khatkhate

Money and Monetary Policy in LDCs in the 1990s

Money and Monetary Policy in LDCs in the 1990s Warren Coats Deena Khatkhate In this article an attempt is made to expand on and update the authors'earlier review of key issues concerning money's role in economic development by treating more extensively topics touched on in the original article that, with the benefit of hindsight, deserved much fuller discussion and by adding several topics that intervening developments and experience have brought to the fore. In the former category, this paper discusses: (a) the information gathering and processing, and risk assessment and management aspects of the financial system; (b) the insights of public choice theory into the difficulties of actually obtaining welfare enhancing policies from highly centralised economic systems and the related problems of rent-seeking behaviour associated with several types of government intervention in economic activities; and (c) the implications of openness and capital mobility for monetary and interest rate policies.

Jealousy of Possessions

Jealousy of Possessions Deena Khatkhate The Indian (from Bharat, that is India) comes to the America of Columbus aggressively determined to establish his identity, but as he begins to feel increasingly American his obsession with his Indian identity evaporates and he strives constantly to disidentify himself with Indians, A FEW centuries ago, Columbus came to the shores of what is known as modern America and called its nauves 'Indians'. It was sacrilege then, as it is now. How could anyone call the cultureless, 'tribal' people, steeped in ritualistic cannibalism, Indians? The people of Aryavarta, who created one of the greatest civilisations of the world and enriched a philosophical domain, deserved better than to be identified with the barbaric natives of America of some mere four hundred years ago. The Indian (from Bharat, that is India) now comes to the America of Columbus, besottedly trying to establish his identity. When he meets an American, he harks back to his Indian prototype and then curses himself that the American does not behave like an Indian. He is distant, callous, artificial, synthetic, outwardly pleasant but inwardly rude. He visits a department store, but what troubles him is the 'deafening discord' he hears from the metronomic beep and stutter of the cash register. That evokes in his mind the picture of a "wizened old man back home who gingerly put the weights onto his scale, weighed the potatoes, counted the change, and talked about his son". He goes to a bank to open an account and feels put off by the bank which identifies him not by his name, but by an alphanumeric symbol. He is disquieted by his alienation, but he wants to remain in a society where he sees neither his past, nor his present, nor his future; he consoles himself that "maybe constant alienation is a healthy antidote to the threat to individualism in a foreign culture".

Peacocks of War

Peacocks of War Deena Khatkhate The annihilation of life in the Gulf war takes one's mind back to Dresden in Germany where 35,000 people perished in British bombing in February 1945. The tragedy lives on in Wilhelm Lachnit's painting 'The Death of Dresden'.

Name-Calling

On January 7 the defence department issued rules requiring reporters working in Pentagon-selected 'pools' to report on the war to travel with military escorts at all times and submit to censorship

Differently Similar

To belong to the truly 'U' class in this Capital City you have to be seen at the right social events and you have to let everyone know that your children go to the right high achievement, high tuition charging, early childhood schools. Doesn't that evoke images of what goes on in our Delhi and Bombay? Yes, but there are differences.

Prometheus Unbound

Prometheus Unbound Deena Khatkhate Justice William Brennan stepped down last year after 34 years as a judge of the US Supreme Court. What he did in this period changed the complexion of American society.

A Ruminating and Humane Economist

A Ruminating and Humane Economist Deena Khatkhate The India of the past was not always like the India of the present. There have been periods in Indian intellectual and administrative history when bright young men have dominated academia and administration. B K Madan, who passed away recently, belonged to this select band of persons who rose to high positions early in their lives and contributed much and steadfastly to their respective areas of specialisation.

A Scatological Chaos

A Scatological Chaos Deena Khatkhate There is an obsession with obscenity in America today which becomes more intense with every passing day

A Tragic Odyssey

A Tragic Odyssey Deena Khatkhate The suicide of Mitch Snyder, a controversial crusader who took up various causes over his lifetime, the most recent being on behalf of the homeless, raises some inconvenient questions for the prosperous sections of American society.

Wreckers United

Wreckers United Deena Khatkhate Corporation is a metaphor for American society, making profits the sole leitmotif. Build a corporation if it makes profit, wreck it if it does not.

Infinite Majesty, Infinite Infamy

will have to stay for some while. That is still no reason why tax rates cannot be raised at the higher ranges of income and some concessions, generous in the extreme, cannot be lopped off. And will it really take much ingenuity to increase substantially the yield from corporation tax, for instance, by slapping a levy on dividends and raising the standard rate by 5 or 10 percentage points, while once again coming down heavily on deductibles currently enjoyed under various pretexts? The comfortably placed have not minded the extra impost on cars; they may nonetheless howl if the government were to propose a package of direct tax measures which takes away five or six thousand crore from out of their income. It will be less than prudent to pay too much attention to their shrieks of protest. Their living standards will be barely affected by the proposed imposts; the only significant consequence could be an abatement of the frenzy in the share markets. Ponderous editorials may of course be written on behalf of the rich, how such stiff doses of taxation are contrary to the spirit of economic liberalisation. Taxation policy has however little to do with liberalisation. Nowhere in the north American continent or in west Europe are companies accorded such kid- glove treatment in taxation matters as over here; just note the contrast between the magnitude of average retained profits after tax here with rates and trends in the advanced industrial countries. Direct tax rates were in fact reduced by the ministry of finance in the seventies on the basis of a specific hypothesis, namely, that lowered rates yield more than proportionate returns. The hypothesis has remained un- proven. Meanwhile, the government has gifted away thousands and thousands of crore of potential revenues to a small number of the lucky rich, who have, in the process, become both luckier and richer.

Pages

Back to Top