My article "The internal dynamic of Indian economic growth" co-authored with Mausumi Das of the Delhi School of Economics and M. Parameswaran of the CDS Thiruvananthapuram has been accepted for publication in the 'Journal of Asian Economics'. It is an account of the acceleration of economic growth in India across policy regimes. It includes a theoretical model of accelerating growth based on cumulative causation and adopts con-integration analysis to test its predictions.
My work on inflation in India with M. Parameswaran will be presented at a seminar at the CDS on April 28. The Abstract is as follows: In mainstream macroeconomics today inflation is related to the ‘output gap’, defined as the deviation of output from its ‘natural’ level (Romer 2012). This view of inflation has been adopted by the leading central banks globally including India’s (RBI 2014), underpinning the worldwide move towards ‘inflation targeting’ as the sole objective of monetary policy. We first present an alternative model of inflation based on features that would be considered typical of the Indian economy and a specific understanding of what drives the inflationary process here. We then econometrically evaluate both the models against Indian data across various periods and at differing frequencies. The exercise is quite conclusive. The results bear significance for the appropriate anti-inflationary policy for India.