Indian Economy

Name: Dhruv Goyal Assignment 6: Reading Assignment

Roll no : 12DCP-032 Subject: Macro Economics

Indias fiscal and monetary fashion model: Growth in an opening economy
About Paper: At the time of Global crisis, Indias fiscal and monetary indemnity had to respond to external shocks and domestic cycles spell maintaining trend high growth with low inflation and ensuring fiscal sustainability. The question was How closely the policies could smooth the cycle and how well the policies could deal with the external shocks? The newsprint analyzes fiscal and monetary policy and suggests exit strategies that would benefit India bit contributing to the global Adjustments. Policy recommendations: Short-run strategies acknowledge early, forward-looking, and so mild, policy responses. Instead of relying solely on reducing select to bring down inflation, a supply- human face policy that reduces costs is an announce conditional adjustment path to anchor inflationary expectations and keep the second-round wage-price effects. Exchange rate appreciation is another monetary measure. short fiscal measures include tax-tariff rates, freer imports, and better management of food stocks. . more than flexibility of the exchange rate allows a smoother and more counter-cyclical interest rate.



Longer-term strategies to reduce the distortions that create chronic inflation include raising agricultural productivity, improving infrastructure and delivery of general services. Growth will improve the fiscal position provided reforms command the necessary quantity and quality of expenditure for alleviating supply side bottlenecks. Short-term exchange rate appreciation would reduce inflationary pressures and the cost of imports required in the high investment phase, while contributing to demand in other countries facing a slowdown. Countries that help finance Indian infrastructure would be benefiting from Indian growth that creates demand for their own products. Crisis and Exit: Inflation always indicates...If you want to get a full essay, order it on our website: Ordercustompaper.com



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