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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The ‘Troika’ goal is not Grexit from EMU but Syrexit from Greece

Unless timely financial assistance is forthcoming, Greece will default on its payment and this might trigger a process of reactions and actions . In January, Greece elected a left-of-centre political party, Syriza, to office. Syriza has pledged to repudiate the debts it owed to international creditors and relax the fiscal austerity programme it had been […]

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China currency devaluation – matter of when and not if

India is not ready to step in as China’s economic engine stutters and stops. In October 2014, the Takshashila Institution published a discussion document on the China outlook for 2015. Events have followed that pattern that the document anticipated. China’s economy is slowing and the domestic economy is not rebalanced. Net exports constitute an increasingly larger share […]

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January 1998 and July 2013 – what is the difference?

Why did Reserve Bank of India’s measures in 1998 work? How do they compare with the current set of measures? I had finished writing my last MINT column on Sunday and dispatched it on Monday morning.[1]  Then we heard that the Reserve Bank of India (RBI) had effectively hiked the interest rate to 10.25% on […]

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The bogus case for fiscal stimulus

A response to the critics of Reinhart and Rogoff’s theory on public debt and growth. The amount of ink that has been shed on the so-called methodological errors and data omissions of Reinhart and Rogoff (R&R) is rather astounding. These two Harvard professors wrote a paper about two years ago equating higher levels of public debt […]

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Promote International Financial Services in India

Promoting International Financial Services from India will further its geo-economic and geo-strategic interests. As India seeks to expand its economic and strategic space globally, promoting International Financial Services (IFS) from India merits urgent consideration of policy makers, and of financial and capital market stakeholders. The primary rationale for promoting IFS in India is that the […]

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