Thursday, December 6, 2007

Issues in Macroeconomics in India

Ajay Shah has a paper on the Macroeconomics in India where he first highlights the aspects where the Indian economy has changed substantially when compared with a decade ago. He explains lucidly about what fiscal policy and monetary policy in today's India should be doing, and propose directions for institutional reform

He says,
[I]ndia has not yet had a crisis deriving from the inconsistent monetary policy regime. Monetary and fiscal reform is required to achieve a consistent speculation -proof policy framework, to smooth the process of India's integration into the world economy. The ideal scenario for the 2007-2010 period involves are that puts a sound macroeconomic framework into place before such a crisis comes about.
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