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Ajit Ranade

25 posts

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What a well-aimed fiscal stimulus could do for India

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Ajit Ranade It is clear by now that we need a large dose of fiscal stimulus to rev up the engine of growth. All eyes are on India’s Union Budget that will be presented in a couple of months. The size of the stimulus will be determined by constraints on borrowi... More »

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Time to give up the bogey of a revenue neutral tax rate

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Ajit Ranade India’s nationwide goods and services tax (GST) was 15 years in the making, if you count the setting up of the VijayKelkar task force on tax reforms as its starting point. That we need a uniform, predictable and stable indirect tax regime across th... More »

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Modern Monetary Theory is populist but not credible

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Ajit Ranade I welcome the response of Sashi Sivramkrishna to my column “The inexplicable allure of Modern Monetary Theory [MMT]”. At the very least, his response adds to a healthy debate on an important topic of macroeconomics. He says that MMT should be caref... More »

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RCEP could still act as a trigger for domestic reforms

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Ajit Ranade It has been seven years since talks began on a Regional Comprehensive Economic Partnership between 10 members of the Association of South-East Asian Nations (Asean) and six other countries. In its early days, it was seen as a China-led counter to t... More »

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The inexplicable allure of Modern Monetary Theory

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Ajit Ranade The latest unlikely convert to half-endorse the idea of “helicopter money” is Stanley Fischer, a former vice-chairperson of the US Federal Reserve. In Washington this past week, amid the World Bank-International Monetary Fund autumn meetings jambor... More »

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Don’t let notional losses hold policy reforms hostage

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Ajit Ranade Senior advocate Harish Salve recently argued that Supreme Court (SC) judgements of 2012 and 2014 had contributed to the current economic slowdown. He was referring to verdicts that led to the abrupt cancelling of 122 telecom licences and the alloca... More »

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A wider deficit is unavoidable to strengthen demand

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Ajit Ranade The dominant consensus on the slowdown in India is that we have a demand problem. Lack of aggregate demand is a phrase that goes back to John Maynard Keynes. He is a ghost who reappears from time to time, however much one tries to bury him. Regardl... More »

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Stakeholder capitalism should not be a cosmetic shift

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Ajit Ranade The Business Roundtable, an association of CEOs of America’s top companies, recently issued a statement that redefines the purpose of a corporation. Signed by nearly 200 top CEOs, including those of J.P. Morgan, Apple, Walmart and Amazon, it essent... More »

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Give up the misplaced faith in a fiscal-driven rescue

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Ajit Ranade My previous column warned about over-dependence on monetary authority to cure the ills of the economy. Should India revive private investment (by reducing interest rates), or boost exports (by managing the currency, or providing cheap export financ... More »