When I was doing my bachelors from Delhi University, India experienced its first major external financing and currency crisis in 1990-91. This inspired me to pursue graduate work in economics and was the foundation for my interest in international finance.
I think GST is a great outcome. There is no ifs and buts about that. It is a transformational event for India.
If a debt crisis results from government profligacy and mismanagement, rather than from a market failure, it is true that the central bank should not intervene.
It is important for India to stay the course on fiscal consolidation.
I think about issues. I use my economic training to devise solutions.
To help resolve conflicts, the rules-based multilateral trading system should be strengthened and modernized to encompass areas such as digital services, subsidies, and technology transfer.
Rather than waiting for a crisis to erupt before intervening, the IMF should provide 'forward guidance' on how it will tackle potential disruptions in international financial markets.
By promising to intervene in vulnerable markets in the event of excessive financial volatility, the IMF, as the largest player, would reduce coordination problems among investors.
The idea that RBI will be able to make a big transfer to the government was misplaced. It was a very good signalling device that the government was very serious about cracking down on corruption and black money. But I do not think it was very effective in curbing it.
There is a need for greater multilateral cooperation to resolve trade conflicts, to address climate change and risks from cybersecurity, and to improve the effectiveness of international taxation.
GDP is a function of capital, labour and how productively you use both.
Opponents of central-bank intervention are right about one thing: monetary financing carries serious risks. In order to ensure that it is as safe and effective as possible, it must be used primarily in the event of self-fulfilling debt crises.
If people expect high inflation and raise wages to reflect the high inflation, then it becomes self-fulfilling.
