Law and Economics of Fiscal Deficit in India - 1998-99 to 2004-05

Das, Rituparna

Abstract

References (10)

Law and Economics of Fiscal Deficit in India - 1998-99 to 2004-05

Rituparna Das

Centre of Risk Management and Derivatives (CRMD Jodhpur)

2005

R. Das, RESEARCH METHODOLOGY IN SOCIAL SCIENCES AND MANAGEMENT, Verlag, 2010

Abstract:
Indian legal frame compels the central bank of the country to increase money supply through financing fiscal deficits and thus fuels inflation, but, the liberalization of the economy has neutralized such inflationary potential. This article shows that the influence of such deficit financing on money stock became virtually nil during the post reform period, rather foreign exchange assets emerged as a powerful determinant of money stock.

Keywords: Central Budget Deficit, Central Bank Credit to Central Government, Money Stock, Net Foreign Exchange Assets, Vector Autoregression

JEL Classification: B22

Accepted Paper Series

Date posted: September 8, 2011 ; Last revised: September 19, 2011

Suggested Citation

Das, Rituparna, Law and Economics of Fiscal Deficit in India - 1998-99 to 2004-05 (2005). R. Das, RESEARCH METHODOLOGY IN SOCIAL SCIENCES AND MANAGEMENT, Verlag, 2010. Available at SSRN: http://ssrn.com/abstract=1331344

Contact Information

Rituparna Das (Contact Author)

Centre of Risk Management and Derivatives (CRMD Jodhpur) ( email )

National Law University
NH 65, Nagour Road
Jodhpur, Rajasthan 342304
India
912915100779 (Phone)
912912577540 (Fax)

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