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Fiscal Consolidation, Budget Deficits and the Macro Economy
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Fiscal Consolidation, Budget Deficits and the Macro Economy

  • Lekha S. Chakraborty - Associate Professor, National Institute of Public Finance and Policy, New Delhi

© 2016 | 220 pages | SAGE Publications Pvt. Ltd

An in-depth analysis set in the context of the ongoing debate on fiscal policy vis-à-vis monetary policy

Is fiscal deficit detrimental to growth rate? Does it create macroeconomic imbalance? If so, is deficit containment a prerequisite for sustained reduction in inflation? Does fiscal deficit crowd out private investment and, if so, to what extent? Does fiscal deficit affect rate of interest?

This book analyses such debates and impacts of fiscal deficit in India, empirically, through macro econometric exercise.  Filling an existing gap, it revisits the debate on the macroeconomic effects of deficit by taking India as a case study based on a long-time series analysis from 1980–81 to 2012–13. 

 

 
Preface
 
Acknowledgements
 
Introduction
 
Fiscal Deficit and Macroeconomic Activity of Central and Subnational Governments
 
Fiscal Deficit, Capital Formation and Crowding Out
 
Deficit–Interest Rate Link and Financial Markets
 
Monetary–Fiscal Policy Coordination: Fiscal Rules and Testing for Monetary Seigniorage
 
Fiscal Seigniorage: Composition of Deficits
 
Fiscal Deficit and Seigniorage Link: Monetary Policy Regimes and Empirical Analysis
 
Fiscal Deficit and Inflation
 
Policy Takeaways: The Revival of Fiscal Activism
 
Bibliography
 
Index

[The author] analyses the impact fiscal deficit has on macroeconomic outcomes in this book…. This is a thorough and detailed effort, which puts a wide range of issues into perspective. It's a contribution that comes at an important time in our economic growth.

   

Civil Society, January 2017
Key features

An in-depth analysis set in the context of the ongoing debate on fiscal policy vis-à-vis monetary policy

Is fiscal deficit detrimental to growth rate? Does it create macroeconomic imbalance? If so, is deficit containment a prerequisite for sustained reduction in inflation? Does fiscal deficit crowd out private investment and, if so, to what extent? Does fiscal deficit affect rate of interest?

This book analyses such debates and impacts of fiscal deficit in India, empirically, through macro econometric exercise.  Filling an existing gap, it revisits the debate on the macroeconomic effects of deficit by taking India as a case study based on a long-time series analysis from 1980–81 to 2012–13. 

 

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ISBN: 9789351509899