Archive for January, 2022

An Accommodative Fiscal Stance Is Crucial for India

Lekha Chakraborty | January 18, 2022

by Lekha Chakraborty and Harikrishnan S.

Omicron is a reminder that the COVID-19 pandemic is still not over. This ongoing health crisis should act as a trigger for greater investments in public health in India. Public spending on health by the union government is still below 1 percent of GDP, though the estimate has increased from 0.2 percent of GDP in 2020–21 (revised estimates) to 0.4 percent of GDP in 2021–22 (budget estimates). Strengthening investments in the healthcare sector is crucial at this juncture, as another lockdown can accentuate the current humanitarian crisis and deepen economic disruptions.

In India, the lockdown was announced on March 24, 2020 by invoking the National Disaster Management Act of 2005. As per the Seventh Schedule of the Constitution, healthcare is addressed at the state-level while interstate migration and interstate quarantine are in the Union List (entries 28 and 81), that is, responsibilities of the central government. While the lockdown helped to flatten the curve, an almost irreversible economic disruption resulted in many sectors.

The National Statistics Office released the advance GDP estimates January 7, 2022, revealing that in the financial year 2021–22 (FY 22), India’s GDP growth rate will be 9.2 percent. In FY 21 it was 7.3 percent. However, this growth estimate is lower than that published by Reserve Bank of India (RBI) in December 2021, which was 9.5 percent. The growth in nominal GDP is estimated to be 17.6 percent. These GDP estimates published ahead of the announcement of the FY 23 union budget are significant as they will be used for projections—including those for the fiscal deficit—in the upcoming budget. How India emerges from the pandemic to meet these estimates will depend largely on an accommodative fiscal policy stance when monetary policy has limitations in triggering the growth recovery. continue reading…


Join Us for the 2022 Levy Institute Summer Seminar

Michael Stephens | January 11, 2022

The Levy Economics Institute of Bard College is pleased to announce it will be holding a summer seminar June 11–18, 2022. Through lectures, hands-on workshops, and breakout groups, the seminar will provide an opportunity to engage with the theory and policy of Modern Money Theory (MMT) and the work of Institute Distinguished Scholars Hyman Minsky and Wynne Godley. Intended for those who are introducing themselves to these approaches as well as those who are looking to deepen their understanding, the seminar will be of particular interest to graduate students, recent graduates, and those at the beginning of their academic or professional careers.

Topics will include the history and theory of money, central bank and treasury operations, inequality and austerity, the job guarantee, MMT and developing economies, current debates over inflation, the Green New Deal, the stock-flow consistent approach to macroeconomic analysis and modeling, financial innovation and the financialization of the economy, cryptocurrency and central bank digital currencies, and more. The teaching staff will include well-known economists, legal scholars, monetary historians, writers, and financial market professionals working in the relevant topic areas.

The seminar will be limited to 60 attendees. Admission will include provision of room and board on the Bard College campus. The fee for the seminar will be $3,000; a fee waiver is available for all those in need.

Applications may be made to Emily Ungvary ([email protected]) and should include a current curriculum vitae and letter of application. Your letter should indicate the nature of your interest in the program and, if applicable, your reasons for requesting a fee waiver. Applications will be reviewed on a rolling basis.

The current list of confirmed faculty and speakers, which continues to grow, is below the fold (in alphabetical order): continue reading…