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Financial Mechanism and Economic Growth

Financial Mechanism and Economic Growth R J Mody ASHUTOSH VARSHNEY has presented (EPW September 1) a report of the discussion that took place in a conference held at MIT on the 'Political Economy of Slow Industrial Growth in India'. The focus of the report is on the current debate on deceleration in the industrial growth since the middle of the 1960s. Two mutually reinforcing proximate explanations are given. The first deals with the deceleration in public investment and the second with the rise in capital-output ratios.

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