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

RecessionSubscribe to Recession

How Has India Dealt With Global Economic Recession in the Past?

Whether or not the Indian economy is going into recession remains debatable. But without a correct diagnosis, measures to counteract the problems will be ineffective.

Negative Interest Rates

A near-unprecedented turn to negative interest rates to trigger a recovery has characterised the monetary policy in several developed countries and in Europe. This is the result of a shift away from fiscal policy to an almost exclusive reliance on monetary policy, involving quantitative easing and low interest rates, in macroeconomic interventions across the globe. The failure of this macroeconomic stance has led to the phenomenon of negative rates in countries other than the United States, and the first sign of even a partial recovery in that country has been enough to set off a reversal.

IMF's Call for Complacence

The International Monetary Fund's World Economic Outlook of April 2016 bodes that emerging market economies, including India, are at risk of sudden capital outflows. The IMF once again makes a case for its conventional, much-discredited tools to manage this risk. To repeat these recommendations, that on many occasions have only worsened crises, is to encourage complacency.

Delinking Housing Cycles, Banking Crises, and Recession

The nexus of housing boom-busts, banking crises, and economic cycles is not unique to the last crisis and has been increasingly present in each of the major banking crises since the break-up of Bretton Woods in the early 1970s. Housing is a politically charged issue. A safer housing market, via planned fiscal intervention to steady supply, would do more to make the financial system safer than all of the other recent initiatives put together. Cheaper finance without cheaper homes only deepens housing inequality.

IT: Deconstructing the Bust that Followed the Boom

This article argues that the IT wave never constituted an exception to the conventional laws of economics and uses traditional economic concepts to explain why the bust that followed the boom was only to be expected and how it does not invalidate the (actual as well as potential) benefits associated with IT.

Calcutta Diary

The economic recession, which threatens to be long-lasting, is the product of the recession of political and cultural ethos; countrymen, we have rediscovered the bliss of colonialism, at least a new version of it, and cannot quite stop admiring it.

Budgetary Arithmetic, Fiscal Imprudence and Macroeconomic Implications

Notwithstanding the attempts made to undo the budget deficits initiating the fiscal reform process, the art of budget making in India is far from salutary both in terms of content, and macroeconomic and social implications. Given the political economy fundamentals (institutional constraints), the adherence to fiscal rules may, at best, contain the overall public expenditures through fiscal pruning measures, but may fail in addressing (i) the distributional effects of public expenditure policies, and hence, (ii) the composition of public expenditure.

Thinking Underlying the Budget

Among the major macroeconomic issues concerning the Budget for 2002-03 and the related economic policies of the government discussed here are whether there is a demand recession in the Indian economy, engineered lower interest rates and their consequences and the probable course of the price level during 2002-03.
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