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

Articles by Prabhat PatnaikSubscribe to Prabhat Patnaik

Fiscal Deficits and Real Interest Rates

Deena Khatkhate and Dan Villanueva’s (henceforth KV) rejoinder (EPW, May 12) to my piece ‘On Fiscal Deficits and Real Interest Rates’ (EPW, April 14) is rather intriguing: after castigating me for my position they reach a conclusion which is in conformity with it. I had argued in my paper that the fiscal deficit has no direct bearing (i e, other than through a general equilibrium system, of which IS-LM is the simplest possible example) on the level of the interest rate, and that therefore the proposition that the fiscal deficit must be cut in order to lower the interest rate, lacks theoretical justification. They conclude: “The factual evidence also shows that interest rates can remain higher with a fiscal surplus, depending on other economic variables, than in a situation with a fiscal deficit”. Their conclusion appears to be in conformity with my argument, though not necessarily identical with it (since I was arguing on a ceteris paribus basis, i e, ruling out other simultaneous parametric changes). From their conclusion too the question should follow: what theoretical justification is there for the current official position that the fiscal deficit must be cut for lowering the real interest rate?

On Fiscal Deficits and Real Interest Rates

The proposition that the size of the fiscal deficit affects the level of interest rates is theoretically completely erroneous, which in turn makes the budgetary strategy fundamentally flawed.

Macroeconomic Fallacies

Macroeconomic Fallacies PRABHAT PATNAIK Iam grateful to A V Rajwade for his comments (EPW, June 17) on my paper

On Some Common Macroeconomic Fallacies

A whole phoney macroeconomics is being propagated these days from the Bretton Woods institutions, which unfortunately, even in this country with its remarkable tradition of economics, has been swallowed not only by the finance ministry but also by large segments of the economics profession.

Democracy as a Site for Class-Struggle

The Marxist movement's concern with the form of government has been almost entirely instrumentalist in character: which form of government in bourgeois society best serves the interest of the working class in its struggle for the transcendence of this society. The purpose of the present paper is to argue that, at least in the context of a society like ours, this is too limited a perspective on the question of democracy. Much more is at stake for the working class movement in defending democracy than merely the freedom to organise. The struggle over the form of government, far from being distinct and secondary to the struggle to alter the class-nature of the state, is in fact intimately enmeshed with the latter, so that one cannot talk of the one without talking of the other

Amartya Sen and the Theory of Public Action

Prabhat Patnaik The range of Amartya Sen's academic contributions is much wider than that of perhaps any other contemporary economist There are at least six major fields where Sen has made seminal contributions.

On the Concept of Efficiency

On the Concept of Efficiency Prabhat Patnaik While a vectorwise larger output for given endowments would constitute an improvement in the efficiency of resource use, such an improvement does not follow from the replacement of an activity set with a lower marginal rate of transformation of one set of goods into another by another activity set with a higher rate. It would follow if the economy always had full employment of resources, but it does not; hence the two perceptions of efficiency are not synonymous.

Macro-Economic Policy and Income Distribution-A Note

Macro-Economic Policy and Income Distribution A Note The discussion of distributional considerations is not an issue separate from that of macro-economic policy measures. No discussion of such measures can possibly be carried out without regard to their distributional implications.

Should Domestic Prices be Equated to World Prices

to World Prices?
Prabhat Patnaik Much has been written in criticism of the neoclassical proposition that a country's domestic prices should be equated to world prices. The assumptions on which it is based have also been much criticised.

Investment Exports and Growth-A Cross-Country Analysis

Investment, Exports and Growth A Cross-Country Analysis Prabhat Patnaik C P Chandrasekhar Growth experience across underdeveloped countries indicates that it is really the investment ratio which plays the crucial role in determining the growth rate. The so-called 'efficiency of resource use,' over which so much hullabaloo has been raised in recent years, does not, by implication, appear to be a particularly significant factor determining relative growth performance. What is more, even the relative export performance across countries appears to be dependent on the relative investment ratios.

Indian Economy under Structural Adjustment

Prabhat Patnaik C P Chandrasekhar What comes through clearly from the Indian experience with structural adjustment is the dominant role of the process of globalisation of finance. Indeed the very design of the current package of structural adjustment hears the imprint of this process and the sequel to the introduction of the package shows that the real mobility witnessed is that of finance rather than that of capital-in-production.

Nation-State in the Era of Globalisation

Nation-State in the Era of 'Globalisation' Prabhat Patnaik The current phase of capitalism is marked by the rise to dominance of financial or rentier interests and the fluidity of finance across national borders. This has undermined the 'control area' of nation-states and made all agendas of state intervention appear vacuous. This economic milieu, however, has had the effect of producing greater unity in the advanced capitalist world, but, as a dialectical counterpart of this, greater disunity in the third world with growing tendencies towards separatism, divisiveness and disintegration. Are we now doomed to this fate for ever or can we overcome it?


Back to Top