Found 43 article(s) for author 'Gita Gopinath'

Gita Gopinath’s Advice To RBI: ‘Be More Transparent’

Gita Gopinath’s Advice To RBI: ‘Be More Transparent’. Gita Gopinath, January 6, 2017, Video, “On NDTV’s Walk The Talk, Economics Professor at Harvard University and Financial Advisor to the Kerala Chief Minister Gita Gopinath says she’s a bit puzzled about why an institution like the RBI which is driven by data was giving out data post demonetisation. She adds RBI should have been more transparent about data. She says she feels that notes ban was a great move by the government and will benefit India in the long run, however she feels the implementation could have been better planned and gradual. She says “getting rid of 86% of the currency in circulation is unprecedented, not just in practice but also in theory”.Link

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Trump’s Tax Plan and the Dollar

Trump’s Tax Plan and the Dollar. Emmanuel Farhi, Gita Gopinath, January 3, 2017, Opinion, “Now that Donald Trump has been elected President of the United States and Republicans control both houses of Congress, corporate tax reform is coming to America. The package currently being discussed includes two important features: a cut in the tax rate, from 35% currently to 20% or even 15%; and a “border-adjustment” tax, which is typical of a value-added-tax (VAT) regime, but unusual for corporate taxes.Link

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Assessing Impact Of Demonetisation Remains A Moving Target

Assessing Impact Of Demonetisation Remains A Moving Target. Gita Gopinath, December 23, 2016, Video, “India’s experiment with demonetisation, the largest such exercise ever undertaken, has caught the attention of global economists. From former U.S. Treasury Secretary Larry Summers, who raised questions about how successful the move will be in curbing corruption, to Harvard Professor Kenneth Rogoff, who advised emerging economies not to ‘try this at home.’Link

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Dominant Currency Paradigm

Dominant Currency Paradigm. Gita Gopinath, December 2016, Paper, “Most trade is invoiced in very few currencies. Despite this, the Mundell-Fleming benchmark and its variants focus on pricing in the producer’s currency or in local currency. We model instead a ‘dominant currency paradigm’ for small open economies characterized by three features: pricing in a dominant currency; pricing complementarities, and imported input use in production. Under this paradigm: (a) terms of trade are stable; (b) dominant currency exchange rate pass-through into export and import prices is high regardless of destination or origin of goods; (c) exchange rate pass-through of non-dominant currencies is small; (d) expenditure switching occurs mostly via imports and export expansions following depreciations are weak. Using merged firm level and customs data from Colombia we document strong support for the dominant currency paradigm and reject the alternatives of producer currency and local currency pricing.Link

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Demonetization Dos and Don’ts

Demonetization Dos and Don’ts. Gita Gopinath, November 27, 2016, Opinion, “On November 8, at 8:15 in the evening, Indian Prime Minister Narendra Modi’s government announced that, at the stroke of midnight, all 500- and 1,000-rupee notes in circulation would no longer be considered legal tender, and would need to be exchanged for new 500- and 2,000-rupee notes. Modi’s “demonetization” intervention affected 85% of the money in circulation in India. It was an unprecedented move, whether in India or almost anywhere else, and it is by far Modi’s boldest policy intervention to date.Link

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India’s Economy after Rajan

India’s Economy after Rajan. Gita Gopinath, June 22, 2016, Opinion. “Raghuram Rajan’s decision not to seek a second term as Governor of the Reserve Bank of India (RBI, India’s central bank) was met with shock from those of us who have been cheering on the Indian economy. While it is no secret that Prime Minister Narendra Modi’s government had its problems with Rajan, few believed that the government would take a step that so clearly undermines India’s interests.” Link

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Dollar Pricing Redux

Dollar Pricing Redux. Gita Gopinath, June 13, 2016, Paper, “A country’s exchange rate is at the center of economic and political debates on currency wars and trade competitiveness. The real consequences of exchange rate fluctuations depend critically on how firms set prices in international markets. Recent empirical evidence has challenged the dominant ‘producer currency’ pricing and ‘local currency’ pricing paradigms in the literature. In this paper we propose a new paradigm, consistent with the empirical evidence and characterized by three features: pricing in dollars, strategic complementarity in pricing and imported inputs in production. We call this the ‘dollar pricing’ paradigm and contrast its theoretical predictions with prior approaches in a general equilibrium New Keynesian model. We then employ novel data for Colombia to evaluate the implications of exchange rate fluctuations associated with commodity price shocks and show that the findings strongly support the dollar pricing paradigm.Link

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Harvard Professor Dr. Gita Gopinath on “Global Economic Trends and Implications for India”

Harvard Professor Dr. Gita Gopinath on “Global Economic Trends and Implications for India”. Gita Gopinath, December 25, 2015, Video. “Dr. Gita Gopinath is John Zwaanstra Professor of International Studies and of Economics, Faculty of Arts and Sciences, Department of Economics at Harvard University, USA. She is a visiting scholar at the Federal Reserve Bank of Boston; Managing Editor of the Review of Economic Studies; co-editor of the current Handbook of International Economics; and a research associate with the National Bureau of Economic Research (NBER) for the programs in Economic Fluctuations and Growth, International Finance and Macroeconomics, and Monetary Economics.Link

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The Effects of a Stronger Dollar on U.S. Prices

The Effects of a Stronger Dollar on U.S. Prices. Gita Gopinath, December 1, 2015, Paper. “Since 2014:Q3, the U.S. dollar has experienced the third-fastest appreciation in over 30 years, with its nominal exchange and real exchange rate rising 15 percent against almost all foreign currencies (as measured by the Major Currencies Dollar Index). This sudden and rapid gain has engendered concerns about how a stronger dollar will affect U.S. export and import prices and ultimately, consumer prices and inflation in the United States. This paper assembles a rich database, spanning the period from 1985:Q1 through 2014:Q4, that combines several measures of prices and exchange rates in order to examine the likely outlook for U.S. import and export prices and consumer prices in the short run (one quarter) and over a 24-month period.Link

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