The Indian economy : A macroeconomic perspective Banik Nilanjan

Contents
List ofFigur es xi
List of Tables xiii
List of Boxes xv
List of Case Studies xvii
Preface xix
Chapter 1: Introducing Macroeconomics 1
• Why Economics 1
• Demand Management Policies 2
• Supply Management Policies 4
• Reconciling Demand and Supply Management 5
• Controlling Output Gap: An Economist's Perspective 7
• ExaminingGDP 13
• Demand-Side Components of GDP 14
• Supply-Side Components of GDP 21
• How We Measure GDP 27
• Factors Affecting GDP 29
Chapter 2: Growth, Development, and Income Distribution 30
• Growth and Development 30
• Growth and Inequality 31
• Understanding Inequality 33
• Measuring Inequality 35
• Inequality in India 40
• Regional Income Inequality 45
• Why Is Inequality Bad? 53
• Policy Recommendations 57
Chapter 3: Demand Management Policies 59
• Fiscal Policy 59
• Understanding the Indian Budget 60
• Reading the Budget 68
• A Closer Look at Tax Rates 69
• Application ofLaffer's Principle in India 72
• Fiscal Deficits and Other Macroeconomic Variables 77
THE INDIAN ECONOMY
• Monetär}' Policy 84
• Money Market Multiplier and Money Supply 87
• Liquidity Adjustment Facility (LAF) 89
• The Monetary Side 90
• Application ofFriedman's Concept in India 92
• Taylor's Rule and Monetary Policy 95
• On Independence of the Central Bank 95
• Relationship between Real and Financial Sectors
Chapter 4: Inflation and Unemployment
• Types of Inflation 99
• Measurement of Inflation 100
• How Is Inflation Calculated? 104
• Inflation in India 105
• Causes of Food Price Inflation in India 106
• Supply-Side and Demand-Side Shocks 113
• Why Is Inflation Bad? 114
• Limitation of the Indexes 115
• Measuring Unemployment 116
• Data on Unemployment 118
• Unemployment Rate in India 118
Chapter 5: Reforms in India
• Explaining Reforms 123
• The Pre-1991 Reform Phase 123
• The 1991 Reform Era 127
• Bugs in the Present 1991 Reform Era 13 7
• Looking Ahead: Scope for Future Reforms 144
• Policy Prescriptions 150
Chapter 6: Trade
• Why Do Countries Trade? 157
• Factors Affecting Trade 160
• The Indian Case 160
• Factors Affecting Exports 162
• Procedures 177
Chapter 7: External Account and Exchange Rates
• India's External Sector 181
• Exchange Rate 184
• Determining the Value of Exchange Rates 186
Contents ix
• Currency Crises and Its Possible Explanations 192
• International Coordination to Mitigate Crisis: A Note on G-20 193
• Multilateral Aid and Voting Power 195
• Sustaining Growth 196
• Shadow Banking and Financial Crisis 196
• TheUninvited 197
Chapter 8: India and the WTO 201
• GATT and WTO 201
• WTO Structure 203
• WTO Rules 204
• Negotiations at GATT/WTO 205
• Trade Costs 214
• An Alternative: North-South Negotiation, and India's Stance at WTO 221
Index
About the Author
226
235

"This book examines the state formation process in Panjab and the qualitative change in the hegemony of elites from Muslims to non-Muslims in the first half of the nineteenth century. It argues that after the emergence of the Sikh faith in the fifteenth century, there appeared on the social fabric of elites two distinct categories, the Muslim and the non-Muslim"--Provided by publisher.