The article highlights how the faster recovery of the U.S. economy aided by the faster vaccination and stimulus packages may pose a policy challenge to the emerging economies. About the fiscal stimulus in the U.S. With the recent passage of Biden’s $1.9 trillion coronavirus relief package, the cumulative fiscal stimulus amounts to 25 per cent… Continue reading How fiscal stimulus in the U.S. will impact emerging economies

The article highlights the issues with government expenditure driven by the selling of public sector assets. How public asset selling could affects private investment decisions Public sector assets are not bought by reducing consumption or investment. Current investment expenditure depends on decisions taken in the past and is more or less pre-determined. Investment decisions that… Continue reading Why privatising public assets is poor economics

The article highlights how Atmanirbhar Bharat policies can play important role in India’s post-pandemic recovery. Decline of trade-led catch-up growth The Asian Development Bank identifies India as an outlier, with the country’s GDP growth likely to range between eight and 10 per cent — as against 7.7 per cent for China and seven per cent… Continue reading Applying the policy of self-reliance to health, infrastructure and green technologies

The article analyses the success of the inflation targeting mechanism in India and its impact on the growth of the economy. Background of the inflation targeting policy in India It has been three decades since inflation targeting was first adopted in New Zealand and subsequently by 33 other countries. India adopted it in 2016. The… Continue reading How did inflation targeting really impact India?