This paper assesses the sustainability of fiscal policy in India from 1950 to 2010 using multicointegration techniques. Starting from the seminal approach of Granger and Lee (1989), the analysis is extended through more powerful econometric methodologies, including several types of...

This paper explores the links between exchange rate credibility and macroeconomic fundamentals with reference to the Italian experience during the first half of the 90s. The analysis relies on a nonlinear framework emphasizing shifts between credible and not credible states, and assuming a...

This paper reassesses the empirical evidence on the finance-growth nexus for India through a large annual data set (1950-2006) and contributes to the current literature in many respects. Differently from most previous research, the empirical evidence supports the ‘demand-following’...

This paper reassesses the sustainability of fiscal policy in India from 1950 to 2010. Overall, the evidence broadly supports the hypothesis that the fiscal policy is "weakly" sustainable and documents a higher speed of adjustment to the intertemporal budget constraint than earlier papers do....