Indira Gandhi Institute of Development Research

About: Indira Gandhi Institute of Development Research is a facility organization based out in Mumbai, Maharashtra, India. It is known for research contribution in the topics: Monetary policy & Inflation. The organization has 307 authors who have published 1021 publications receiving 18848 citations.

Global Financial Architecture : past and present arguments, advice, action

Abstract: In the context of the formation of G-20, the paper points out the absence of reform in the global financial architecture (GFA) after the East Asian crisis, and assesses factors that can improve the chances of real reform this time. A factual assessment of various causes advanced for the global crisis, puts the main responsibility on lax regulation. Liquidity created by current account imbalances was tiny compared to endogenous amplification of liquidity in the financial sector. Emerging markets needed reserves as self-insurance in the face of volatile cross border flows. Even so global imbalances increase risk. The paper summarizes the Chimerica debate and the blocks that have stalled progress in resolving the issue. It argues that symmetric and balanced reform, at individual country and international level, is required to remove the blocks. Deeper governance reforms will make it feasible. Potential contributions of the G-20 are outlined. It is argued that India is a useful example of flexible but managed exchange rates that allowed market deepening and export growth.

Exchange Rate Regimes: Middling Through

Abstract: The appropriate exchange rate regime, in the context of integration of currency markets with financial markets and of large international capital flows, continues to be a policy dilemma. The revealed preference for most governments is for some kind of intermediate regime, suggesting a need to study these regimes more carefully. We find that the majority of countries are moving towards somewhat higher exchange and lower interest rate volatility. Features of forex markets could be partly motivating these choices. In a model with noise trading, non-traded goods, and price rigidities we show that bounds on the volatility of the exchange rate can lower noise trading in forex markets; decrease fundamental variance and improve real fundamentals in a developing economy; and give more monetary policy autonomy to smooth interest rates. Central banks prefer secret interventions where they have an information advantage or fear destabilizing speculation. But in our model, short-term pre-announced interventions can control exchange rate volatility, pre-empt deviations in prices and real exchange rates, and allow markets to help central banks achieve their targets. The long-term crawl need not be announced. We conclude with some discussion of the regime's applicability.

Counter Conflict through Mutuality: Lessons from Bayesian Updating

Abstract: Using Bayesian updating to deterministic priors, persistence of fundamentalist belief can be explained. Under such belief system if conditional evidence is diametrically opposite and also deterministic then a process of change can set in. In situations of conflict this could be explored through dialogue that calls for mutual respect and allows reasonable pluralism. In situations where interaction is the basis, self-defeating scenarios can be avoided by giving space to others. Thus, in the political sphere one has to be accommodative. Showing concern towards others will also make things easier for deterring conflicts.

Creating youth employment in Asia

Abstract: Several countries in the Asia-Pacific region are experiencing demographic changes. Over 60 per cent of the world's youth live in Asia and the Pacific, which translates into more than 750 million young women and men aged 15 to 24 years. They represent a key asset for the countries of this region. Young people are a major human resource for development, key agents for social change and driving force for economic development and technological innovation. But harnessing these resources is a major challenge. The youth challenge is considered as the most critical of the 21st century's economic development challenge. In this context, this paper examines the labour market characteristics for adults and the entire population. Then it analyses challenges and opportunities in labour market for youth. Next, the paper discusses the existing and needed policies for taking care of the challenges in overall and youth labour markets. It also provides conclusions and recommendations. We also highlight the gender issues in the paper. The recommendations include direct policies such as active lbour market policies, social protection programmes, fair migration and indirect policies like pro employment macro policies. There are significant links between creating employment opportunities for the youth and enhancement of human development. Employment and livelihoods particularly productive youth employment has impact on most of the indicators of Sustainable Development Goals (SDGs). They can reduce poverty, under nutrition, improve the education, health and gender equality.

Policies for the poor: verifying the information base

Abstract: This paper illustrates how policy formulation without prior data verification would not make much sense and serve any purpose. Given the National Sample Survey (NSS) finding on substantial errors of inclusion of the non-poor in the targeted Public Distribution System (PDS) and its extenuation that all the targeted beneficiaries are genuinely poor, we examine how valid is the explanation and hence, the recommendation for a universal PDS. Contrary to the general perception, the targeted PDS is universal and the need of the hour is to address the error of excluding the genuinely poor rather than provide a universal PDS/cash transfer.