China’s Macroeconomic Policy Options: A Sectoral Financial Balances Perspective

This paper attempts to discern the macroeconomic policy options open to China after its stock market crash in August 2015. While several facts and figures on different facets of the Chinese economy keep pouring in – high levels household savings, rising indebtedness of private sector, slowing GDP growth rates, contracting current account surplus, and many more – it is difficult to get a holistic picture of the Chinese macroeconomy and the policy options that it has in wake of the significant changes taking place. The Sectoral Financial Balances (SFB) model, which has its basis in a simple accounting identity, provides a simple, consistent and logical framework that can help us work through the fog and put these facts and figures in perspective. At the same it allows us to trace the movement of the economy through time and draw insights into the possible trajectory of the economy given trends in various macroeconomic parameters. From our analysis, can we say that China is heading towards a major crisis? And what could be the possible policy response of the Chinese government in averting such a crisis? These are important questions that need urgent answers

Cracks in BRICs: A sectoral financial balances analysis and implications for macroeconomic policy

BRIC – Brazil, Russia, India and China – were, in the recent past, not only considered to be the largest and fastest growing economies amongst the emerging markets but also the engines of global economic growth. However, since 2012 cracks have emerged in this narrative. With negative, decelerating and insufficient GDP growth, the BRIC countries are floundering. This paper attempts to identify the causes, policy responses and challenges emanating from these policies for each of the BRIC economies using the post- Keynesian, Structural Financial Balances framework. The study draws attention to the importance of fiscal policy as a short-term macroeconomic policy option

Dammed Waterways and a Colonial Legacy: Statutory Law-Making in the Conservancy of Indian Fisheries, 1867–1897

Through an exploration of events that unfolded from the earliest calls for conservancy of Indian fisheries under the British colonial government in 1867 to the passing of a statutory law in 1897, we argue that colonial law-making was a non-linear and complex evolutionary, rather than transformational process. The basis and blueprint for a statutory law in India can be traced to similar concerns in the over-exploitation of riverine fish in Britain as well as to the implementation of Indian forest laws at about the same time. Moreover, the process had to deal with personalities and their claims for recognition while the colonial government sought legitimacy to exert control over resources by appointing highly competent and commended individuals. Concerns over food security as well as the possibility of resistance of the local population could have impelled the need for caution in implementing statutory laws, which may have ultimately resulted in a delay of three decades before the Indian Fisheries Act was finally passed in 1897

Macroeconomic Implications of US Sanctions on Iran: A Sectoral Financial Balances Analysis

Iran is facing a severe macroeconomics crisis after the US (re)imposed sanctions on its oil and gas exports in May 2018, followed by additional sanctions on metal exports in 2019. Its exports have collapsed triggering a contraction of the economy along with accelerating inflation and depreciating currency. Using the sectoral financial balances (SFB) model, we study the interrelationship between several macroeconomic parameters maintaining stock-flow consistency across time and sectors of the economy. Fiscal and monetary policy cannot reverse the consequences of the sanctions although fiscal deficits as a percentage of GDP will see a rise to accommodate the domestic private sector’s desire to accumulate financial asset accumulation. The lack of a strong monetary policy mechanism in Iran may, however, be unable to quell the impact of expansionary fiscal policy on inflation and depreciating rial. Given the limited macroeconomic policy options open to Iran in dealing with the crisis Iran, the only option may be political – a return to the negotiating table with the US

A heuristic analysis of equity and equality in the institutionalisation of property rights: the Baliraja water distribution experiment, India

Natural resource management perceived as a search for institutions that can ensure simultaneous fulfilment of three goals: productivity (or efficiency), sustainability and equity. In this article, we study the implications of pursuing the goal of equity in the management of surface water resources for irrigation with a heuristic model incorporating a Leontief-type fixed production function. The analysis has been carried out in the backdrop of the Baliraja water distribution experiment in India. One suggestion is that the allocating tradable water rights over water, a common property natural resource, can be used as an instrument to improve equity. Unfortunately, advocating the use of water distribution as an instrument of poverty alleviation is fraught with implicit assumptions about the rural economy and uncertain outcomes. It is important for planners to understand that the concepts of equity and equality are applicable to inputs and outputs or outcomes. We attempt to understand the implications of equality in water distribution on social welfare with a simple heuristic analysis. Theoretical analysis shows the possible outcomes of such a policy and also intended to raise pertinent questions and hypotheses in studying the effectiveness of irrigation and watershed initiatives where rights over water have been redistributed equally.equality; equity; India; natural resource management; property rights; water distribution; surface water resources; irrigation; institutionalisation; water rights; social welfare.

Bound states of Klein-Gordon particles in scalar screened Coulomb potential

One-dimensional Klein-Gordon equation with screened Coulomb potential generates genuine bound states in the scalar coupling scheme. In this article we have obtained the exact solutions of the problem. The results are compared with those of the vector coupling scheme