Fiscal Consolidation, Budget Deficits and the Macro Economy (Hardback)  | Released: 19 Oct 2016

An in-depth analysis set in the context of the ongoing debate on fiscal policy vis--vis monetary policy Is fiscal deficit detrimental to growth rate? Does it create macroeconomic imbalance? If so, is deficit containment a prerequisite for sustained reduction in inflation? Does fiscal deficit crowd out private investment and, if so, to what extent? Does fiscal deficit affect rate of interest? This book analyses such debates and impacts of fiscal deficit in India, empirically, through macro econometric exercise. Filling an existing gap, it revisits the debate on the macroeconomic effects of deficit by taking India as a case study based on a long-time series analysis from 1980-81 to 2012-13. Table of Contents: Preface Acknowledgements Introduction Fiscal Deficit and Macroeconomic Activity of Central and Subnational Governments Fiscal Deficit, Capital Formation and Crowding Out DeficitInterest Rate Link and Financial Markets