Economics is changing: A Nobel for 3 pragmatic poverty-fighters shows that

International News
This year’s economics Nobel prize went to three worthy economists — Abhijit Banerjee and Esther Duflo of the Massachusetts Institute of Technology, and Michael Kremer of Harvard University. The prize, which was awarded “for their experimental approach to alleviating global poverty,” shows several important ways that the economics discipline is changing.
A popular conception of economists is that they’re the high priests of the free market, downplaying the role of government and giving short shrift to the needs of society’s poorest. A great many economists defy this stereotype, spending their careers studying how to uplift the poorest citizens of the developing world through government action. Banerjee, Duflo and Kremer fall into this category.
For example, all three have studied the benefits of education. Citizens of developed countries generally take universal public education for granted, along with the economic wealth that an educated populace creates. Developing countries, such as Kenya and India, don’t have this luxury. In 2003, Kremer reviewed a series of randomized controlled trials in Kenya that found that spending more on education was effective, but that health treatments like deworming were also useful for keeping kids in school. Banerjee and Duflo, along with co-authors Shawn Cole and Leigh Linden, studied a program that hired tutors for underperforming students in India, as well as a computer-assisted learning program, and concluded that both were effective. Duflo has also found big wage gains from public education spending in India, confirming the central role of schools for economic growth.

 Over the years, Banerjee, Duflo and Kremer looked at programs that nudge developing-world farmers to use more fertilizer, provide microcredit to slum residents, create quotas for women in local government, provide deworming treatments for the poor, eradicate malaria, and many other targeted ...READ MORE

Political risks to rate cut, what India's women economists predict for 2019

Economy & Policy:

India’s economy, among the world’s fastest growing, faces risks from a global slowdown and political instability after a national election. That’s the view of the top women economists covering the nation.

Slower growth and benign inflation will boost chances of back-to-back interest rate cuts by the Reserve Bank of India in April, according to the three analysts, who are ranked among the most accurate female forecasters in Bloomberg surveys on growth and inflation. The rankings are based on two years of contributed surveys.

Political risks are also intensifying as tensions with Pakistan mount and Prime Minister Narendra Modi’s re-election bid gets more heated.

Here’s a look at what the economists expect for the rest of the year:

Sonal Varma

Chief India Economist, Nomura Holdings Inc.

Top woman forecaster for quarterly gross domestic product
Growth: Weaker global demand will affect everything from India’s exports to manufacturing, Varma said, while tight financial conditions will hurt domestic demand and political uncertainty will delay investment decisions. She forecast growth of 6.8 percent in the fiscal year starting April versus Reserve Bank of India’s 7.4 percent.


 Interest Rates: “The Reserve Bank reaffirmed its focus towards headline inflation and its willingness to support growth, which suggests the February policy cut was not a ‘one and done’,” Varma said. Based on her assessment of slower growth and inflation remaining below RBI’s projection, she expects another rate cut in April of 25 basis points...Read More