In this Paper we assess the progress made by the profession in understanding whether and how exchange rate intervention works. To this end, we review the theory and evidence on official intervention, concentrating primarily on work published within the last decade or so. Our reading of the recent literature leads us to conclude that, in contrast with the profession's consensus view of the 1980s, official intervention can be effective, especially through its role as a signal of policy intentions, and especially when it is publicly announced and concerted. We also note, however, an apparent empirical puzzle concerning the secrecy of much intervention and suggest an additional way in which intervention may be effective but which has so far received little attention in the literature, namely through its role in remedying a coordination failure in the foreign exchange market.

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Official Intervention in the Foreign Exchange Market: Is It Effective and, If So, How Does It Work?

Much has been written about the measurement of socio-economic position (SEP) in high-income countries (HIC). Less has been written for an epidemiology, health systems and public health audience about the measurement of SEP in low- and middle-income countries (LMIC). The social stratification processes in many LMIC-and therefore the appropriate measurement tools-differ considerably from those in HIC. Many measures of SEP have been utilized in epidemiological studies; the aspects of SEP captured by these measures and the pathways through which they may affect health are likely to be slightly different but overlapping. No single measure of SEP will be ideal for all studies and contexts; the strengths and limitations of a given indicator are likely to vary according to the specific research question. Understanding the general properties of different indicators, however, is essential for all those involved in the design or interpretation of epidemiological studies. In this article, we describe the measures of SEP used in LMIC. We concentrate on measures of individual or household-level SEP rather than area-based or ecological measures such as gross domestic product. We describe each indicator in terms of its theoretical basis, interpretation, measurement, strengths and limitations. We also provide brief comparisons between LMIC and HIC for each measure.

/pdf/measuring-socio-economic-position-for-epidemiological-2crc75af7y.pdf

Measuring socio-economic position for epidemiological studies in low- and middle-income countries: a methods of measurement in epidemiology paper

Why Ethnic Parties Succeed: Patronage and Ethnic Head Counts in India. By Kanchan Chandra. Cambridge: Cambridge University Press, 2004. 368p. $80.00. In the post-9/11 world where the “clash of civilizations” has moved beyond classroom debates to the public realm, it is refreshing, and challenging, to see a study that does not give ethnicity an easy ride. The title of this book is slightly misleading, though, because even while it concedes that appeals for political support on the basis of ethnic categories based on “race, caste, tribe or religion” (p. 2) are frequently made, sometimes with considerable success, it asserts that such tactics do not always succeed. When they do, it is not necessarily because of their putative appeal to sentiments but, instead, because both ethnic candidates and their supporters, rather than being swayed by appeals to their nonrational selves, are actually driven by sophisticated calculations of expected gain. Their utility calculus takes the size of the ultimate prize as well as the probability of winning it into account when they choose to align themselves with one set of politicians as opposed to another. Kanchan Chandra's parsimonious and general model explains why ethic parties in India, riding on Hindu or, for that matter, Tamil nationalism, succeed in some contexts but not in others.

Why Ethnic Parties Succeed: Patronage and Ethnic Head Counts in India

This paper examines the channels through which external debt affects growth in low-income countries. Our results suggest that the substantial reduction in the stock of external debt projected for highly indebted poor countries (HIPCs) would directly increase per capita income growth by about 1 percentage point per annum. Reductions in external debt service could also provide an indirect boost to growth through their effects on public investment. If half of all debt-service relief were channeled for such purposes without increasing the budget deficit, then growth could accelerate in some HIPCs by an additional 0.5 percentage point per annum.

https://www.imf.org/-/media/Websites/IMF/imported-full-text-pdf/external/pubs/ft/wp/2003/_wp03249.ashx

External Debt, Public Investment, and Growth in Low-Income Countries

Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, by Abhijit Banerjee and Esther Duflo. Jackson, TN: PublicAffairs, 2011. 320 pp. ISBN: 978-1-58648-798-0 (hbk.). US$26.99. Po...

Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty

Does Caste Still Define Disparity? A Look at Inequality in Kerala, India

The debt overhang and the disincentive to invest

This book examines the contemporary nature of caste disparities in India by using a framework that integrates discussions on caste from other social science disciplines with those from within economics. It brings together quantitative evidence on different dimensions of caste disparities based on two large national-level data sets, in order to analyse the degree of change in the caste system over the last two decades. Offering evidence based on economic analysis, it questions commonly-held views and challenges traditional wisdom. The author uses the latest methods that allow researchers to gauge discrimination and shows how some of these methods have been used in the Indian context and what the quest has yielded. The book also discusses policy responses to disparities and discrimination by reviewing the existing quota system.

The Grammar of Caste: Economic Discrimination in Contemporary India

Using household information in the National Family and Health Survey (NFHS) 1992/93 data, this paper examines regional variations in intercaste disparity in India. Based on five variables that are indicators of the standard of living of the three major caste/tribe groups identifiable in the data, a “caste deprivation index” is constructed that can be reversed to read as a “caste development index.” Mapping the regional variation in this index, the paper makes a plea for focusing on caste as an essential ingredient in the study of stratification patterns in India’s population.

https://papers.ssrn.com/sol3/Delivery.cfm/RODE_RODE112.pdf?abstractid=2724268&mirid=1

Caste at Birth? Redefining Disparity in India

Inter-group disparity in India is multifaceted; this paper focuses on gender and caste as two important indicators of disadvantage. An assessment of the contemporary state of the gender-caste overlap suggests that the economic condition of women continues to be defined and constrained by their caste status. At the same time, the traditional distinction between lower caste and upper caste women, based on the relative egalitarianism and greater freedom of movement of the latter, needs to be revised. The Dalit (low caste) women are the worst off, as they belong to a group that is materially at the bottom of the ladder; their relative deprivation is compounded by low levels of autonomy and greater exposure to domestic violence.

Ashwini Deshpande

Papers

Does Caste Still Define Disparity? A Look at Inequality in Kerala, India

The debt overhang and the disincentive to invest

The Grammar of Caste: Economic Discrimination in Contemporary India

Caste at Birth? Redefining Disparity in India

Assets versus Autonomy? The Changing Face of the Gender-Caste Overlap in India