India should push the World Bank to focus on generating ideas and technology.
If India reverts to a trend growth of say 8-plus per cent soon, the time is ripe for commencing the process of fiscal consolidation, especially since her public sector balance sheet remains so fragile, says Arvind Subramanian.
China shows that strong public finances are important for global leadership.
The current Euro-Atlantic Monetary Fund must become an International Monetary Fund.
The RBI's big decision is not how much to ease but whether to monetise the fiscal deficit.
Residents did not bolt for the exit, dampening the crisis' financial impact.
We must use the crisis to find the sensible middle ground between finance fetishism on the one hand, and status quo statism on the other.
The risk of worldwide protectionism looms, especially if the dollar appreciates.
It is undeniable that India's foreign exchange reserves have helped in limiting the impact of the financial crisis. If India had gone into the crisis with $100 or even $150 billion of reserves instead of $300 billion, the rupee would have declined more steeply, more quickly. China with its nearly $2 trillion of reserves suffered very little effect on the currency, says Arvind Subramanian.
Funding for Indian companies that have borrowed abroad has also dried up because of trouble in foreign credit markets, forcing these companies to turn to the domestic banking system for credit. And firms' own funding has declined as profits have headed south.
Grand schemes for macroeconomic policy coordination have a mixed record.
The Prime Minister should focus his energies now on reforming higher education.
There isn't much to prove the point that the problems of the US are because of globalisation.
How India engages with the world may have to change.
China, now has perhaps the lowest labour share of any major country in the world.
In the face of failed poverty reduction programmes, the govt. should implement cash transfer scheme to alleviate poverty in India.
The World Bank's statisticians have changed the economic facts. Under these circumstances, Keynes, the economist, would have us change our opinions, while the great scientist, Einstein, would have us tamper with the facts especially if they clash with our theoretical priors. Which should it be? A little bit of both, it seems.
How special is India's recent performance? The International Monetary Fund's recent World Economic Outlook illustrates the dramatic improvement in economic performance across the developing world. Sub-Saharan Africa, which grew at just over 2 per cent during the 1990s, registered average growth of 5.5 per cent since 2003. Latin America's relatively anaemic growth rate of 3 per cent has similarly surged to over 5 per cent since 2004.
The Indian public is not naive and indeed demonstrates a streak of hard realism in its judgments about the US.
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