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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 incredibly myopic fund

Prosperity has dulled the appetite for the heavy-lifting and pain-bearing required to restore sustainable economic growth in the world. It was an eventful week for the world economy. First, OECD slashed its global growth forecast for 2015 from 3.7 percent to 3.1 percent but kept its forecast for 2016 at 3.8 percent. Everything will always […]

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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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Scorched economy: poisoning the well

Will the current government choose responsibly, or leave the well poisoned for the rest of us?  In 1462, Price Vlad III (the original ‘Dracula’) retreated through Turkish-controlled Bulgaria across the Danube river fighting the Ottoman Turks, and in the process, poisoned all sources of water to delay his enemies. This is a scorched earth policy, […]

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Non Relevant Indians

Why should an NRI become the least relevant of all Indians? Diaspora: the movement, migration, or scattering of a people away from an established or ancestral homeland We disperse, float away, settle in new lands – mostly by design but sometimes by default – and we take root. I am one such example. I did […]

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Riding the rupee tiger

Have we tamed the animal that is the rupee-dollar exchange rate? The arrival of a new RBI governor seems to have clicked with the markets – stocks are up to near-all-time-highs, while bond markets have remained positive after some scary moves. The Rupee has reversed rapidly, down to the Rs 61 levels from the Rs […]

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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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