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

Articles by Ashima GoyalSubscribe to Ashima Goyal

Macroeconomics in India

Macroeconomics edited by Prabhat Patnaik; Oxford University Press, Delhi,
TO make research on Indian themes accessible to the student is a laudable objective. It carries with it a heavy responsibility of being balanced, comprehensive and readable. In that respect there are both negative and positive aspects to the timing of the book under review. The reforms have focused attention on macroeconomics. A clear understanding of the way in which they interact with the structure of the economy is essential for their success. The book offers a platform to develop this understanding. Unfortunately, given the sharp differences between schools of macroeconomics, the conjuncture makes it all the more difficult to desist from polemics. Most of the authors represented in the volume do manage to resist the temptation. Occasional lapses arc perhaps inevitable.

Putting Structure on Structural Adjustment

Ashima Goyal The paper attempts to build a framework to appraise the structural adjustment programme (SAP). It is argued that while such a framework should work with macro-economic categories of aggregate demand and supply, it should incorporate structural features of the Indian economy, focus on the decisions of the firm over the medium run, and be capable of analysing the affects on growth, of macro-economic policies. Conclusibns follow that inflation is best managed by a set of policies that stimulate demand as well as supply. The possibility of multiple equilibria implies that a set of policies that act in concord to push the economy on a high growth path can lead to a situation where every group benefits. As the price of food is the nominal standard for the Indian economy, policies that effect the former are particularly important.

Developing Economy Macroeconomics-Fresh Perspectives

Aspects of New Keynesian Economic, Rational Expectations and General Equilibrium Macroeconomic theories, issues of dynamics and stability are selectively surveyed in this paper. Insights are extracted from these for analysing special features of a typical developing economy. Building on these, an analytical frame is presented in which the role of demand supply factors m India's medium-run macroeconomic performame can be consistently examined.

A Tale of Two Countries-China and India

restoring the class-based politics of the communist movement (which has been ousted from the mainstream in the Hindi-Hindu belt

Growth and Industry

Ashima Goyal Industrial Policy and Planning, 1947-91: Tendencies, Interpretations and Issues by J C Sandesara; Sage Publications, New Delhi, 1992.

Demand, Supply and Savings Constraints in Indian Economy

Demand, Supply and Savings Constraints in Indian Economy Ashima Goyal This paper develops three model related criteria to classify the non-agricultural sector of the Indian economy as demand or supply constrained. The savings behaviour of the economy is then examined and related to these criteria. It is shown that while a short-run dynamic demand constraint held, a longer-run supply or resource constraint dampened investment demand in the late 60s and 70s. High public sector investment from the late 70s helped maintain favourable growth dynamics that has led to financial deepening and increased flow of resources to productive sectors, helping to relax the longer run resource constraint. This, in turn, may make possible innovative fiscal reform, including sale of public sector enterprises, to maintain high new public sector investment, until growth can become self-sustaining.


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