ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by V S RaghavanSubscribe to V S Raghavan

New Series on National Accounts Statistics and Structure of Indian Economy

and Structure of Indian Economy Deepak Mohanty V S Raghavan The CSO has now made available a long period (1950-51 to 1987-88) comparable series of major macro-economic aggregates at constant prices. This paper used this data to analyse the growth and structural characteristics of the Indian economy since the First Plan. The components of GDP at constant prizes are compared between the old and new series of national accounts statistics for the 1980s. Finally, certain methodological issues in the estimation of savings and capital formation are discussed.

Applicability of Monetary Approach to Balance of Payments

Applicability of Monetary Approach to Balance of Payments THE view that money market disequilibrium plays a fundamental role in the determination of balance of payments (BP) has gained considerable importance in economic literature in the past three decades. In what has come to be known as the Monetary Approach to BP (MBOP), it has been propagated that BP is essentially a monetary phenomenon. Disequilibrium in BP is the direct consequence of mis-match between demand for money and supply of money. Furthermore, a major proposition of the MBOP is that a devaluation will be successful unless accompanied by an equi- proportionate expansion in domestic credit.1 The MBOP, developed by the economists associated with the 'Chicago Workshop' in the sixties and early seventies, soon became the cornerstone of the stabilisation programmes sponsored by the International Monetary Fund (IMF).2 In fact, the Fund has been an ardent advocate of the approach in case of developing countries, notwithstanding its stagflationary potential and the questionable causality from domestic component of money to net foreign assets.

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