Policy simulations with a macroeconometric model of the Indian economy

摘要: Abstract In this paper, the results of various dynamic policy simulations are analyzed within context a macroeconometric model Indian economy. The contains 35 equations and offers consistent framework for analysis. It is considerably expanded on side fiscal sector usefully incorporates interdependence between monetary sectors gives due attention to supply considerations. Magnitudes effects sustained changes period 1964–1965 1974–1975. Impact multipliers elasticities also analyzed. Government expenditures variables deficit financing shown have substantial impact system whereas in tax-rates, discount-rates, liquidity ratios commercial banks only marginal impact. used exploring growth potential economy forecast five years under alternative assumptions regarding options.