India’s Fiscal and Monetary Framework: Growth in An Opening Economy
Published By: IGIDR on eSS | Published Date: December, 01 , 2010Since a crisis is a shock impinging on a system, the response can be used to deduce aspects of the
system’s structure. Analysis of the crisis and recovery suggests aggregate supply in India is elastic but
subject to upward shocks. This has implications for the exit and for fiscal consolidation. Both monetary
and fiscal policy should identify measures that would reduce costs, while preventing too large a demand
contraction. Specific policies are identified and Indian policies evaluated. [WP-2010-025]
Author(s): Ashima Goyal | Posted on: Feb 01, 2011 | Views(1178) | Download (237)