Suchergebnisse

The present article develops an argument in which depreciating Indian rupee is basically due to underdeveloped status of domestic production base that is reflected in continuing trade deficits. It argues that price theoretic policies not only manage trade imbalances but also completely neglect the revival of domestic production base that can induce a tendency towards exports-led correction of the trade imbalances, that is, it neglects the importance of exports to make a transition towards strong production base, manageable trade balances and strong foreign exchange status; if so, the continuing Indian deprecation negates international financial stability status. The present article provides an alternative policy focus that is on finance-led initiations of broader Youngian–Kaldorian division of labour that favourably shapes demand-based market mechanism (and growth of aggregate demand) and results in sophistication in industrial differentiation, that is, increased specialisations in intermediate goods production. It is argued that such transition confers a developed status with respect to the (BBoP basic Balance of Payments i.e., trade and foreign direct investment [FDI] inflow prospects), which in turn is crucial to achieve financial balance of payments (BoP) stability. All in all, the price theory is inapplicable when trade is based on absolute cost disadvantages and Keynesian policies provide the solutions.

As an alternative to conceptualisation of endogenous money in Taylor's rule of interest management, the present article considers Keynes's general theoretic endogenous money supply, which is in response to demand for money generated in income determination process (and the induced growth processes). That money is important, as a real factor production, to actualise expected production (and growth processes). The contribution of the present article is to incorporate the crucial role of liquidity preference insight-based rate of interest to control endogenous money. The setting of such policy rate, in tune with the implicit pressures on liquidity preference, then, on principle, permits constancy of velocity, which permits in turn better monetary aggregate management achieved, now, by this Keynes's route.JEL: E4; E5; E12

There is some evidence that an increase in the regional manufacturing disparity in India is associated with regional (panel data specific) embodiment hypothesis. The purpose of the present article is to provide different interpretations of such association. It endeavours to illustrate that the neoclassical perspective is best suited for universal applications (and long-run tendency towards global regional convergence), and the tweaking of such principles—to generate conditional convergence theories, just to explain persistence regional disparity—fails to convince. In this present context, the present article adopts an augmented Keynesian–Youngian thesis wherein the embodiment hypothesis not only explains the intrinsic possibility of the disparity but also makes clear why the so-called conditional variables (emphasised otherwise by the neoclassical attempts) differ regionally.JEL Codes: O11, O15, O47, R11, D29

This article maintains that the need to increase the share of manufacturing (in real terms) in gross domestic product (GDP) from the present around 15 per cent to around 25 per cent is an important policy focus but signifies an arduous task in the context of intense global competitiveness. It should allow for providing encouragement to firms to search for greater markets backed by a concentrated effort to carry out narrow specialisations in a few manufacturing related tasks/products. It can only contribute immeasurably towards encouraging 'inquiring minds' that in turn supports a tendency towards knowledge-based economy for the purpose of the long-term meaningful participation in international trade (and finance). JEL Classification: F31, J60, O14