Economics Weekly Seminar: Arjun Jayadev
March 27 @ 1:30 pm - 2:40 pm
- This event has passed.
Title: A simple framework for analysing fiscal and monetary coordination in India
Speaker: Arjun Jayadev, Azim Premji University
Wednesday, March 27, 1:30 – 2:40pm
AC 02 LR 105
Abstract: Macroeconomic policy in India has been moving from discretion to ’rules’ based approaches. As developed, these rules do not ‘talk’ to each other, but they cannot be dealt with separately as a matter of logic, since both interest rates and deficits affect fiscal and monetary policy jointly. I present a ‘toy’ model from Jayadev and Mason (2018) of these interdependencies and show how one can think of this as a question of the assignment of different policy instruments to achieve the same end. I then show that understanding the implications of this interdependency suggests that the rules currently being adopted may be too restrictive (Jayadev 2018).