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

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Liquidity, Prices and Growth-A Note

Liquidity, Prices and Growth A Note Prabhat Patnaik Amal Sanyal This note tries to outline briefly a theoretical framework for analysing the interaction between the monetary and the real sectors of an economy like ours. This framework differs both from the Keynesian and the monetarist ones.

Market Question and Capitalist Development in India

Development in India Prabhat Patnaik Capitalist development in an economy like ours, taking place within the context of particular agrarian relations and a particular power configuration in the world capitalist economy, depends crucially upon the state to widen its market. The ability of the state to do so however is itself limited. The market question therefore gets linked to the ability of the state to generate enough resources to maintain the tempo of its own investment. This ability in turn is determined by the play of class forces in the economy

A Synoptic View of Underdevelopment

A Synoptic View of Underdevelopment Prabhat Patnaik The Political Economy of Underdevelopment by Amiya Kumar Bagchi; Cambridge University Press Cambridge, UK, 1982 (Modern Cambridge Economics Series); pp viii + 180.

The 1984-85 Budget-Gathering Fiscal Crisis

Gathering Fiscal Crisis Prabhat Patnaik The 1984-85 Budget appears rather bemusing at first sight. The Central Plan outlay is to be stepped up by as much as 25 per cent, but no major tax efforts have been made, And yet the magnitude of deficit financing is estimated not to exceed Rs 1,762 crore, which is less than Rs 200 crore in excess of what was proposed in last year's budget. What then has happened to the fiscal crisis which even the Economic Survey had hinted at? How has the Finance Minister managed his sums so that so much seems achievable with so little effort? The simple answer to this is that there is a great deal of 'window dressing. The impression of fiscal soundness which the Budget exudes is altogether misleading.

Some Macro-Economic Propositions around Current Budgetary Policy

Some Macro-Economic Propositions around Current Budgetary Policy Prabhat Patnaik The essential feature of the current budgetary policy consists in the following: raising substantial additional resources through indirect taxation, of which the freight, price and duty hikes are but specific examples, for investment in a few key areas, notably energy, while attempting to keep the budget deficit within reasonable bounds that would also riot be too offensive to the I\MF. In this paper the author discusses not so much the details of this year's budget proposals as certain macro-economic implications of this overall budgetary policy, which surprisingly have drawn rather less attention than they should have.

Policy of Inflationary Contraction

There is enough internal evidence in the 1982-83 Budget to indicate that apart from the price increases already decreed, further increases are contemplated and in fact the budget figures are worked out on that basis.

Towards an Explanation of Crisis in a Mixed Underdeveloped Economy

Underdeveloped Economy Prabhat Patnaik S K Rao The mixed economy, in country after country, has come to face a crisis. The crisis is not temporary or cyclical, but one affecting the very viability of this type of economy. A situation inevitably arises when economic growth cannot proceed further within the framework of the mixed economy without creating enormous inflationary pressures, Inflation, of course, hits at the real living standards of the urban and rural proletariat and semi-proletariat; more important, however, from the point of view of the ruling classes, it hits at the petty bourgeoisie and, in particular, the crucial articulate segment of it, the professional groups and the salariat, and throws it into the camp of the opponents of the ruling classes.


The strategy of the Budget for 1975-76 is quite clear: concentrate your shrinking investible resources mainly on inputs for agriculture; and find the wherewithal for this, if necessary, through a further squeeze on mass consumption rather than on the consumption of the middle and upper classes.

Oil the Political Economy of Underdevelopment

Introduction MOST theories of underdevelopment outsidethe Marxist tradition arc united by a common theme

Disproportionality Crisis and Cyclical Growth-A Theoretical Note

A Theoretical Note Prabhat Patnaik A slowly growing agriculture imposes strict limits to the growth of industry; these limits in a capitalist economy make their presence felt through a process of discontinuous growth, ie, booms and slumps or cyclical movement A boom comes to an end when real wages have been pressed hard enough through a rise in food prices to reduce capacity utilisation; this comes about in the industrial necessaries sector by a fall in workers' consumption and in the other industrial sectors by a fall in investment especially of the government which is sensitive to the political implications of continuing' inflation in food prices; the sensitivity of private investment to capacity utilisation creates a downward spiral leading to a slump; finally the growing unemployment and the stowing down of inflation create conditions for a new spurt of industrial growth as government investment picks up once again and so eventually does private investment.

Expansion In Spite of Excess Capacity

October 29, 1966 Expansion In Spite of Excess Capacity A Possible Explanation Prabhat Patnaik This brief note attempts to explain the phenomenon, observed in engineering industries, of large additional capacity being created in industries which already have substantial under-utilised capacity.


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