India’s inflationary expectations rising…

There are usually three ways to measure inflationary expectations in an economy:

1. Surveys
2. via Inflation protected securities
3. via some econometrics techniques (see this paper which measures India’s inflation expectations using this technique)

As third option can’t be updated every now and then, first two are preferred. In India, we do not have Inflation protected securities (though there are talks of issuing them), we are left with surveys.

Indian Govt seeks Rs 54.6k cr more for grants– Impact on fiscal deficit

Manish of indiabiznews.com requests to write a post on the topic.

Last week, Indian government said that it was asking Parliament to approve an increase in expenditure of Rs 54,588.63 cr for several purposes. I have just made a table of expenditure under various heads:

Assorted Links

• July -2010 unemployment report card continues to show a grim picture. The unemp rate was 9.5%. It is now being called as Great Stall amidst economists. Who invented the term -  Steve Blitz of Majestic Research. Gulzar responds; WSJ Blog points to econ’s reaction; IFMR Blog points to a new report on using postal offices for financial inclusion
• Gulzar posts about storing solar power via molten salts. Earlier solar power plants remained idle after sunsets. Now because of innovations, a solar power plant can continue to produce energy 8 hrs after sunset. Though there are huge challenges to be overcome before it becomes commercial.
• TGS on India’s inflation and growth speed limit
• Krugman says we need Peter Diamond as Fed Governor.
• WSJ Blog points Raghuram Rajan on India’s ‘Fault Lines’
• There ia another vigorous debate happening. It is with respect to Congressman Paul Ryan’s plan to consolidate US public finances . Krugman has been criticising it bug time. Taylor on The Ryan Roadmap versus the Road to Ruin; Mankiw points to a few more links
• Hamilton summarises the US economy. It doesn’t look good at all
• PFM BLog on Evaluation of Government Performance and Public Policies in Spain