Ideas for India | Ila Patnaik

Ila Patnaik
National Institute of Public Finance and Policy
Ila Patnaik is a Professor at the National Institute of Public Finance and Policy (NIPFP). Prior to this, she was the Principal Economic Advisor to the Government of India from May 2014 to December 2015. She has also worked at the National Council of Applied Economic Research (NCAER), Indian Council for Research on International Economic Relations (ICRIER), and as economics editor at the Indian Express. Her main area of interest is open economy macroeconomics, including issues related to capital flows, the exchange rate regime, monetary policy, business cycles, and the financial sector in the context of opening of the capital account. Her recent papers deal with India's experience with capital flows, methods for testing, dating and monitoring structural change of the exchange rate regime, an examination of the exchange rate regime in India and China, questions of moral hazard in the currency exposure of firms, and explaining the change in home bias against Indian firms.

Articles By Ila Patnaik
Union Budget 2018: Not as expansionary as appears at first blush
Posted On: 05 Feb 2018

In this article, Ila Patnaik assesses the implications of the recently announced Union Budget for inflationary expectations and monetary policy.
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When higher volatility is good news
Posted On: 16 Dec 2015

Topics:   Finance

Conventional wisdom suggests that access to financial services such as banks and bond markets, providing savings and borrowing instruments, allows smoothing consumption over lifetime, irrespective of income fluctuations. Yet, India and other emerging economies have witnessed an increase in consumption volatility relative to income volatility after financial sector development. This column argues that large permanent income shocks in emerging economies explain this puzzle.
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Foreign currency borrowing by Indian firms: What do we know?
Posted On: 09 Nov 2015

Topics:   Finance

As foreign currency borrowing by Indian firms has been increasing, concerns have surfaced about rising associated risks. Hence, recent policy changes seeking to make the regulatory regime simpler and more transparent are timely. This column addresses several important questions regarding foreign currency borrowing of Indian firms, the answers to which can provide a firmer basis for ongoing policy formulation.
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Where is India’s growth story headed?
Posted On: 25 May 2015

The global financial crisis and domestic policy paralysis led to a decline in firms’ investment activities and investors’ business confidence in India. Could this have affected the economy’s long-term growth? This column contends that institutional capacity for reform and the right policy action can render the negative investment shock temporary, and ensure that the trend growth of output remains strong.
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Foreign investors under stress: Evidence from India
Posted On: 19 Jul 2013

Emerging market policymakers are concerned about the effects of foreign portfolio flows on financial stability. This column focuses on the behaviour of investors in extreme events, allowing for the possibility that what happens under stressed market conditions may differ from day-to-day outcomes. The findings for India suggest that while on good days, foreign investors exacerbate the boom by bringing in additional capital, no significant effects are found on very bad days in the local economy.
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Capital controls in India: Did they work?
Posted On: 21 Jan 2013

Are capital controls the right way to manage an economy? This column looks at what we can learn from India’s experience, where capital controls have never been fully dismantled.
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