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

Articles by Sugata MarjitSubscribe to Sugata Marjit

The Role of Informality in Moderating the Impact of Adverse Macroeconomic Shocks

In the presence of informality, adverse demand shocks have a lower impact on aggregate output and adverse supply shocks have a lower impact on prices as well as output. Both would imply that countries without a substantial informal sector, largely more affluent nations, would be more exposed to higher prices following such shocks. This is consistent with contemporary evidence of stagflation in developed countries. Being the residual sector, the informal sector inevitably moves in the opposite direction to the formal sector during a bad shock episode, cushioning its aggregate effect. We then show that the argument goes through if the firms have to finance their working capital requirements by borrowing
from the market.

Monetary Policy and Stagflation

Monetary policies are traditionally viewed as having no direct effect on aggregate supply. This article argues that this view of neutrality of the supply side to monetary policies may change if we pay more attention to the role of money supply on the working capital requirements of firms.

Socio-economic Status of Muslims in West Bengal

Notwithstanding methodological differences, the findings of successive reports on the socio-economic conditions of Muslims in West Bengal show a significant improvement of the community in the state. Muslim majority districts such as Murshidabad and Malda show better performance of some socio-economic indicators like literacy and employment in government jobs than the non-Muslim population among the surveys.

Not in People's Interest

The politics and economics of interest rate formation in this country must be studied carefully. Lowering the interest rate raises stock prices in an environment where they themselves cannot move up thanks to the fundamentals of the economy that are not conducive.

Tax Efforts of West Bengal and Andhra Pradesh

West Bengal is facing dire fiscal and financial stringency. Bengal is compared to Andhra Pradesh in order to understand its revenue-generating capacity. A new approach that uses National Sample Survey Office data on consumption expenditure is used to decompose the aggregate consumption data of each state to estimate tax collection for each commodity group. It is found that some part of West Bengal's poor tax realisation may be due to unusually low per capita consumption of some commodities that are important for taxation. The discrepancy might be related to a larger informal sector, and thereby, under-reporting of actual consumption, or genuine consumption behaviour reflecting a different intra- and inter-temporal preference structure. This opens up new avenues for future research.

The Interest Rate Affair

There is forever a demand to reduce interest rates, but the evidence in India in recent years is that lower rates by themselves do not spur investments. The rate of investment depends on other factors. What an interest rate cut does is directly increase the profi ts of the corporate sector.

Fair Price Medicine Shops in West Bengal

The 24x7 Fair Price Medicine Shops in the public hospitals of West Bengal have visibly reduced the average price of critical medicine and appliances. Their services should now be extended beyond hospitals so that they reach out to a larger share of patients.  

On UPA vs NDA; Gujarat vs Rest of India

In a lucid article published in this journal (“Did Gujarat’s Growth Rate Accelerate under Modi?”, EPW, 12 April 2014), Maitreesh Ghatak and Sanchari Roy demonstrate that the performance of the Narendra Modi government in Gujarat has not been exceptional.

Auction and Corruption

An auction process for sale of public assets will not be completely corruption-free but if properly designed and implemented it will actually minimise the likelihood of manipulation. Why then is a government headed by an economist worried about taking the auction route?

The Fall of the Rupee

The euro crisis is a scapegoat for the rupee's travails. It is inflation, excessive consumption and fiscal profligacy which are making the rupee vulnerable to external shocks.

The Many Lives of Kalyan Sanyal

Kalyan Sanyal was trained as a trade theorist in the mid-1970s and initially made many signifi cant contributions in the fi eld. But he later abandoned neoclassical economics to turn to a study of the Marxian approach to development. An appreciation by a former younger colleague who has an intellectual debt to Sanyal's work in trade theory.

Politics and Governance

The debacle of the Soviet Union pro mpted many to reassert the inherent contradictions of a centrally controlled socialist system or the so-called command system of allocation and distribution of resources.


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