Archive for August 16th, 2016

Adding “realism and a degree of modesty” to monetary policy framework?

August 16, 2016

Reserve Bank of Australia chief Glenn Stevens in a speech says:

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How to make GST a success by nudging people to go for pucca bills…

August 16, 2016

All kinds of ideas are emerging on how to make GST a success. Right from prescribing the right revenue neutral rate (why use such a complicated term) to state participation, all is being written and discussed.

Dhirendra Kumar of Value Research gets to the basics and looks at this issue of people preferring kaccha bills (fake) over pucca bills (authentic) to avoid taxes. After all, much of GST is around this idea of paying only value added tax across goods and services. This will require proper billing across the cycle for the tax to work.

How will the government ensure people will suddenly switch to a proper billing system and pay taxes? He points to this interesting solution – Taiwan Uniform Invoice Lottery:

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Why do economists fail? (EPW 1949 edition)

August 16, 2016

EPW has a piece from its archives (06 Aug, 1949) which remains relevant till date. Though, things have moved in terms of availability of data (lack of which leads to failure) etc but still we need a lot more as shocks keep coming from all kinds of sources.

 

Subramaniam vs Subramanian: Has profit taken precedence over people?

August 16, 2016

Saurabh Chandra former secretary, Ministry of Petroleum and Natural Gas goes beyond the sensational tweet two months ago.

He says there is a longtime strategy of US medicine companies to undermine efforts to make medicines cheaper in India:

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How Central banks moved from fiscal dominance to financial dominance..

August 16, 2016

Daniela Gabor of University of the West of England has a nice paper on political economy of repo markets.

The summary of the paper is here. She explains how we move from one crisis to another in macro/monetary policy. Emergence of Repo was seen as an end to fiscal dominance. But it triggered a new problem of financial dominance:

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