Chandigrah: Dr C. Rangarajan, Chairman, Economic Advisory Council to the Prime Minister has underlined the need for central banks of the developing economics to be transparent and explicit with the objectives of growth and financial stability, having price stability as their dominant objective. "Tying central banks to specific target of inflation may be too restrictive, and many even be counter productive", warned Dr Rangarajan.
He said maintenance of price stability at a level considered appropriate by the central banks themselves was, perhaps, the best approach. By maintaining price stability a central bank can pave the way for fulfilment of other objectives as well over the medium term.
Dr Rangarajan made this suggestion in his inaugural address at the 93rd annual conference of the Indian Economic Association (IEA) being held on the Panjab University campus here today. More than 3000 delegates from all over India and abroad are participating in this three-day event.
Dr Rangarajan said there was a raging debate going on currently on whether the present financial crisis in the west was precipitated by monetary policy failure or regulatory failure. It has been agued that lax monetary policy led to low interest rates which caused many distortions in the system culminating in the crisis.
The macro conditions preceding the crisis which included low real interest rates due to "Great Moderation" with a long period of very stable growth and stable low inflation led to systematic underestimation of risks and very low risks premia in financial markets.
He, however, said those who argue that the crisis was triggered by regulatory failure point to lax regulation and supervision which led to increased leverage, regulatory arbitrage, and less due diligence in loan origination. He said it was interesting to note that the country hit hardest by the current international crisis – United States – had not formally adopted inflation targeting as its objective. On the other hand Canada or Australia which had formally accepted inflation targeting had been affected very little by the crisis, he added.
Dr Sukhadeo Thorat, Chairman, University Grants Commission, and Professor of Economics, Jawaharlal Nehru University, New Delhi in his presidential address stressed the need to modify the nature of the growth to make it more pro-poor and formulate policies to make farm and rural non-farm growth more pro-poor. He said there was also a need to strengthen the present pattern of agricultural growth by increasing the support and incentive for small and marginal farmers.
The per unit growth in agriculture brings greater decline in poverty or self-employed poor farmers than poor non-agricultural households engaged in non-farm production and business, he added.
The strategy for inclusive growth in the Eleventh Plan, he said, is not just a conventional strategy for growth but it is a strategy which aims at a particular type of growth process to meet the objectives of inclusiveness and sustainability.
Earlier, the Panjab University Vice-Chancellor Prof. R.C. Sobti in his welcome address informed the distinguished guests and delegates of the outstanding achievements of the university and its remarkably high ranking status globally (387 among 500 leading educational institutions) and nationally in scientific research (number one in India).
Prof. Sobti said by taking steps towards increasing the number of seats for reservation for the Other Backward Classes for the students in the Panjab University as part of university's obligation under the Central Education Institutions Act was in a way a tribute to the father of the nation, Mahatma Gandhi's and realization of his ideal of Swaraj. He said the university has already received a grant of Rs.150 crore for its development projects and hoped the UGC chairperson would use his good offices in the early release of another 58 crore needed urgently.
A documentary of the Panjab University prepared by the University's School of Communication Studies was also screened to the delegates which was highly applauded by all.
On this occasion mementoes were presented to honour Dr. C. Rangarajan, Dr. Anil Kumar Thakur, secretary and treasurer, IEA; Prof. M. Madaiah, former president, IEA; Prof. L.K. Mohana Rao, Principal, Andhra University College of Arts and Commerce, Andhra University, Vishakapatnam (AP); Prof. Sukhdeo Thorat, Chairman, U.G.C. and President, IEA.; Prof. G.K. Chadha, Chief Executive Officer, South Asian University, New Delhi; Prof. T.S. Papola, visiting professor, ISID, New Delhi; Prof. H.S. Shergill, former Professor of Economics, Panjab University; Prof. R.C. Sobti, Vice-Chancellor, P.U.; Mrs. Rangarajan and Mrs. Chadha; Mrs. Madaiah and Dr. Ajit Singh from Cambridge University, U.K.
Prof. L.K. Mohana Rao, Principal, Andhra University College of Arts and Commerce, Vishakapatnam and vice-president of Indian Economic Association read out the citation Prof. Sukhdeo Thorat presented the Sushila Thakur Merit Award for the Best Women Paper Writer to Ms. Harwinder Kaur of Punjabi University, Patiala. On this occasion various editions of Indian Economic Journal and so many books on economics were also released by Prof. Sukhdeo Thorat.
Prof. Thorat also released a book jointly written by Prof. Sucha Singh Gill, Prof. Gurmail Singh and Prof. H.S. Shergill and a Souvenir of the Panjab University. In his lecture, Dr. Anil Kumar Thakur, Secretary and Treasurer of the IEA highlighted in detail the activities and achievements of Indian Economic Association. He said that the IEA had more than 4600 members in India and abroad, at present.
The Indian Economic Association (IEA), the oldest and largest academic-discussion-led body of economists in India, which was founded by Dr. Gilbert State, Prof. C.J. Hamilton and Prof. Percy Ansely of the three Presidency Universities of Madras, Bomaby and Calcutta in 1917, has become worldwide. Its academic fragrance has already crossed the boundary line of India. 'A study of Village Economics' authored by eminent scholar Prof. V.K. Kale was the first paper for the IEA. The current periodical 'Indian Economic Journal' was first published in 1952 by Prof. C.N. Vakil, R. Bala Krishna and V.B. Krishnamuthi, and Prof. P.R. Brhmanda was a long service editor of this esteemed journal. Presently the Indian Economic Journal has reached top ranking under the stewardship of Prof. V.R. Panchmukhi among academic journals.
IEA's former presidents include renowned scholars like Dr Manmohan Singh, Prime Minister of India, Prof. Amartya Sen the Nobel Laureate, Prof. V.K.R.V. Rao, Prof. G.S. Bhalla, Prof. G.K. Chadha and Dr I.G. Patel, all eminent economists. Prof. Sukhadeo Thorat, Chairman, University Grants Commission is the President of Indian Economic Association currently. First time, 43rd Annual conference was organised on PU campus in December 1960 and then 78th annual conference of the IEA was held in December 1995.
Prof. Gurmail Singh, chairperson, department of economics and local organizing secretary of the conference proposed a vote of thanks.
Source: India Education Diary
http://indiaeducationdiary.in
No comments:
Post a Comment