Articles by V Pandit

In considering a switch over to value added taxation or any of its variants, what is of fundamental importance is the effect on resource allocation in the economy and resource transfer to the government. This implies that what needs to be considered is the revenue that is generated under alternative systems and the structure of absolute and relative prices associated with each.

Controlling Inflation Some Analytical and Empirical Issues V Pandit In its perception of the problem of inflation the finance ministry has placed excessive emphasis on the demand- pull factors, overlooking the strong cost-push phenomena that have characterised the Indian economy in recent years. An across the board contractionary fiscal and monetary policy, even if effectively implemented, is not a good substitute for efficient resource utilisation. In fact it may hurt the economy and turn out to be stagnationist, at least in the short run.

Informal Credit Markets, Black Money and Monetary Policy Some Analytical and Empirical Issues K Sundaram V Pandit In a recent paper Acharya and Madhur have sought to examine whether and how far the presence of informal credit markets and black money frustrates monetary policy. They reach the conclusion that "contrary to a view held in some circlesf official monetary-credit policy has on the informal credit market". The' some circles', presumably refers, inter alia, to an earlier paper by the present authors wherein, while discussing the implications of the large volume of liquid wealth arising from cumulation of savings out of black income, they noted that "this liquidity is immune to any monetary fiscal policy", which is quoted by Acharya and Madhur, but also went on to state that "it can move round in the economy creating unpredictable excess demand in several vulnerable sectors of the economy''.