Suchergebnisse

The results of various dynamic policy simulations are analyzed within the context of a macroeconometric model of the Indian economy. The model contains 35 equations & offers a consistent framework for policy analysis. It is considerably expanded on the side of the fiscal sector & usefully incorporates the interdependence between monetary & fiscal sectors & gives due attention to supply side considerations. Magnitudes of effects of sustained policy changes are analyzed for the period 1964/65-1974/75. Impact multipliers & elasticities are also analyzed. Government expenditure variables & deficit financing are shown to have a substantial impact on the system, whereas changes in tax rates, discount rates, & liquidity ratios for commercial banks are shown to have only a marginal impact. The model is used for exploring the growth potential of the economy in a forecast period of five years under alternative assumptions regarding policy options. 9 Tables, Appendix. HA.