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

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Real Estate Price Is Reversible

Sanjoy Chakravorty in "A New Price Regime: Land Markets in Urban and Rural India" (EPW, 27 April 2013) argued that the real estate price rise in India over the last 10 years or so is not reversible. This response says that prices can fall in real terms if the government effectively does away with the licence-permit-quota raj in the real estate sector.

External Account: A Role for International Credit Lines

While sharing the concerns regarding the current account defi cit and lower foreign exchange reserves voiced by S L Shetty ("External Account: Distinct Signs of Discomfort on the Horizon", EPW, 6 October 2012), this comment suggests that India should seriously debate the purchase of a credit line from the International Monetary Fund and intervene in the foreign exchange market more actively.

Financial Sector Reforms

The draft Raghuram Rajan Committee report is neither fiscalist nor does it recommend that the Reserve Bank of India focus only on inflation targeting ignoring macroeconomic variables, as observed by Lekha Chakraborty (June 21, 2008). This comment criticises Chakraborty's views on solution multiplicity, priority sector loan certificates and asymmetric information and related problems in the context of capital account convertibility.

Financial and Real Assets in a Broad Perspective

A shift from real assets to financial assets in the portfolio of household savings can increase efficiency at the margin. This requires increased separation of ownership from management, a reduction in financial repression, a reduced dependence on self-employment, and a policy of providing infrastructure and more land for urban use.

More on Capital Account Convertibility

More on Capital Account Convertibility GURBACHAN SINGH This note comments on some of the papers on capital account convertibility We also attempt to further contribute to
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