Macroeconomics and Inequality in the Context of India: Role of Monetary and Fiscal Policies
Traditionally, the field of macroeconomics studies the determination of aggregate dynamics of macroeconomic variables, such as national income and price level. However, experience of recent decades, especially the Global Financial Crisis and now the Covid-19 pandemic in the context of sharply rising trends of inequality, have refocused macroeconomists to study the distributional aspect of macroeconomic policies.1 The literature (see, for example Ahn et al 2018 and Gornemann et al 2016), largely focused on the US and other developed economies, increasingly recognize this bi-directional relationship: macroeconomic policies impact inequality, and existing
inequalities influence the aggregate impact of macroeconomic policies.
Macroeconomics and Inequality in the Context of India: Role of Monetary and Fiscal Policies
| Project Team: | Arpita Chatterjee, Saroj Bhattarai and Gautham Udupa |
| Sponsor: | IIM Bangalore |
| Project Status: | Ongoing (Initiated in April 2022) |
| Area: | Economics & Social Science |
| Abstract: | Traditionally, the field of macroeconomics studies the determination of aggregate dynamics of macroeconomic variables, such as national income and price level. However, experience of recent decades, especially the Global Financial Crisis and now the Covid-19 pandemic in the context of sharply rising trends of inequality, have refocused macroeconomists to study the distributional aspect of macroeconomic policies.1 The literature (see, for example Ahn et al 2018 and Gornemann et al 2016), largely focused on the US and other developed economies, increasingly recognize this bi-directional relationship: macroeconomic policies impact inequality, and existing |