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

EconomicsSubscribe to Economics

Inflation Theory Comes Full Circle

A public interchange among some leading macroeconomists suggests a change in the way inflation is perceived by the profession. It is increasingly being recognised that inflation can be the outcome of a conflict over income, reflected in the continuous attempt by the firms to raise prices and by the workers to raise wages in order to gain a larger share of it. At least some part of the inflation in India can be seen as a conflict over income shares and sketches a theory of inflation suited to its economy. Against this background, the effectiveness of inflation targeting is touched upon—the inflation-control strategy of the Reserve Bank of India—and the necessary steps to curb inflationary pressure in India are pointed out.

Dynamics of Economic Growth in India

Using a model based on the Stojanovic’s matrix of growth to understand India’s economic progress shows that the service sector has been the dominant mover of the economy after the start of the reforms in 1990–91. The growth pattern, according to the matrix of growth, can be interpreted as maximising long-run efficiency, and hence, it might be an appropriate investment policy to approximate the output proportions generated using the matrix of growth.


Emerging Pattern and Trend of Migration in Megacities

Rural-to-urban migration, particularly between states, towards megacities continues to contribute to their overall growth, although the trajectory of migration is shifting towards smaller cities.

The COVID-19 Pandemic and the Formal Sector Crisis in IT and ITeS

The information technology and information technology-enabled services sector in India have largely been opaque, with little known about its social profile, work conditions, and office culture. The sector hides its everyday workings behind massive revenue figures and the number of jobs in the organised sector it has created. What slips through the cracks is the precarious nature of these permanent jobs and the shocking ineffectiveness of employee protections. These vulnerabilities, built into the employment and work culture of the sector, acquired a nightmarish quality during the COVID-19 pandemic. With most IT companies being forced to shift their employees to work-from-home formats, it is crucial to study how these vulnerabilities have affected the latter. This paper draws upon media reports, a short online survey, and telephonic interviews to highlight the working conditions in the IT and ITeS sector, the experience of working from home, and the overall state of its permanent employment.


COVID-19 and Insolvency Law

The World Development Report (WDR), 2022 highlights the relevance of adopting effective strategies for maintaining the financial stability of a nation in the wake of COVID-19.

Income Distribution and Aggregate Demand in the Indian Economy

Does there exist a trade-off between labour income share and output growth rate? Or does a reduction in the wage share reduces the output growth rate? These questions remain central for analysing the impact of change in income distribution on the output growth rate. Since the dilution and suspension of labour laws involve exogenous changes in income distribution, the impact of such policies would depend on the relationship between income distribution and aggregate demand. This paper attempts to lay bare this relationship for the Indian economy through an empirical analysis of India’s macro data and a theoretical model based on the regression results.


What Must be the Priority of the Budget?

Improving agriculture incomes and boosting consumer demand must be the top priorities.


Agricultural Transformation or Compromising Food Security

A response to the paper “Water and Agricultural Transformation in India: A Symbiotic Relationship—I” by Mihir Shah, P S Vijayshankar, and Francesca Harris (EPW, 17 July 2021) argues that the solutions proposed in the paper will neither revolutionise India’s agriculture sector nor minimise the water and soil problems listed.


Loss of Job, Work, and Income in the Time of COVID-19

The counter-intuitive nature of the results of the Periodic Labour Force Survey 2019–20 is unravelled by arguing that in a situation of exogeneous shock, such as the COVID-19 pandemic, the poor and vulnerable working people will be forced to engage in some kind of economic activity for sustaining


Back to Top