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finance

Indian financial code: real risk of financial capture

The biggest risk that the draft financial code poses to Indian economic and financial stability is that it vests tremendous powers in the executive branch of the government. India’s factor markets are broken. Land acquisition is next to impossible. Labour market reforms are threatened by a coalition of international agencies and molly-coddled labour unions. Banks have […]

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What is the defining legacy of the Indian budget 2015-16?

Examining the budget for its revenue and expenditure projections and other announcements. Analysing and Indian budget is a tricky job. At its core, it is a statement of government revenue and expenditure. At another level, it is a statement of economic policies of the government. Governments, over the years, have used the occasion of the […]

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An epitaph for central banking

The world needs to be prepared for the possibility that from 2015 onwards, global growth disappoints and asset markets become increasingly volatile as a prelude to commencing their long overdue decline.  IMF revises global growth down The International Monetary Fund (IMF) cut the global GDP growth forecast for 2015 by 0.3 percent from 3.8 percent […]

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RBIs recent decisions

The recent decisions by the RBI with respect to cash withdrawals  are completely bereft of economic and financial reasoning. Two recent decisions of the Reserve Bank of India are retrogade in the sense that they encourage people to withdraw and use more cash rather than transacting with money within the banking system. The first case is […]

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The Jan Dhan Yojna: the key considerations in obtaining desired outcomes.

Accountable and transparent organisational structure for implementing PMJDY should be essential for realising the desired societal outcomes. On the occasion of the 68th Independence Day, prime minister Narendra Modi announced an initiative, to be formally launched on August 28,2014, to enable those currently not having access to banking and other financial services to do so […]

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Does Asia need another development bank?

India’s best response to China’s AIIB voting structure and decision hierarchy is to reform, reduce inflation and grow strongly. The Asian Development Bank (ADB) met for its annual meeting in early May in Astana, capital of the Republic of Kazakhstan. Finance ministers, diplomats and development bankers popped the proverbial bubbly and exchanged notes. The ADB has […]

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Central banking in crisis

The political economy risk to the RBI’s institutional credibility. The appointments of central bank governors have become almost as high-profile and important as that of finance ministers. In recent weeks, UK, India, and shortly the US, would have nominated new central bank governors. Many expectations have been raised about their ability to pull their respective […]

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