India's fiscal and monetary framework: growth in an opening economy

Ashima Goyal

Indira Gandhi Institute of Development Research, Mumbai Working Papers from Indira Gandhi Institute of Development Research, Mumbai, India

Abstract: Since 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.

Keywords: Crisis; fiscal and monetary policy; exit; aggregate supply elasticity (search for similar items in EconPapers)
JEL-codes: E10 E52 E62 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2010-12
New Economics Papers: this item is included in nep-cis, nep-mac and nep-mon
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Related works:
Journal Article: India's fiscal and monetary framework: growth in an opening economy (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ind:igiwpp:2010-025

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