Finance
KYC: Know Your Central bank
February 14, 2019Yet another resignation of the Central bank’s Governor, Urjit Patel, mentioning “personal reasons” especially during the time when the tussle between the Central Government and RBI is evident, has surely raised many eyebrows. Earlier, Former RBI Governor Raghuram Rajan had resigned on 4 September 2016 as the 23rd Governor of India’s Central bank without willing […]
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The “STANCE” change -Bidisha Bhattacharya
February 10, 2019The decision taken by the Central Bank on Thursday, 7th of February not only did surprise economists but market watchers as well. Whereas the unanimous decision of changing the monetary policy stance from ‘calibrated tightening’ to ‘neutral’ seemed plausible, the cutting of the repurchase rate by 25 basis points didn’t quite seem a sine qua […]
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Why are recessions always a shock?
January 13, 2019Financial models that are widely used by various analysts, investors and hedge fund managers across the world have their foundation in economic theories. But the real question that arises with respect to these models that are so relied upon by people to help them make their investment decisions, that tell them where to invest their […]
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How elections will affect your investment strategy?
January 13, 2019India will be voting to choose its 15th prime minister in the Lok Sabha Elections this year. April-May 2019 will observe the integration of politics and financial markets so much so that the market will be clinging to every bit of news flow and reacting to it. The investors are keeping a hard eye on […]
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A take on RBI and Government stand off
January 13, 2019The ongoing tussle between the government and the RBI regarding various issues has seen a new turn with the resignation of Urjit Patel as the RBI chief and paving the way for the appointment of Shaktikanta Das, a former economic affairs secretary at the Finance Ministry, for the top job. The monumental decision of carrying […]
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IL&FS Conundrum – Triggering the panic button in the Indian Economy?
December 12, 2018On the eve of the 10th anniversary of the slump of Lehman brothers that set off the 2008 global financial crisis, India’s leading infrastructure development and finance company, IL&FS defaulted on its payment obligations to its borrowers triggering a shock wave in the Indian markets. IL&FS – The Stakeholders IL&FS Ltd. (Infrastructure Leasing and Financial […]
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Asymmetric Information and Economic Policy
November 21, 2018Consider a market for second hand cars where the sellers are usually more informed about the quality of the car and its various features than the buyers. The car can either be a “lemon” (bad quality second-hand cars) or a “peach” (good quality second-hand cars) and assume that the buyer is willing to pay 50,000 […]
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Should Governments Worry about Public Debt
November 21, 2018“The boom, not the slump, is the right time for austerity.” – John Maynard Keynes Should fiscal policymakers try to reduce government debt? As with many of the debates surrounding Macroeconomics, there is no consensus among the different economists regarding this question. The proponents of reducing government debt argue that debts place a burden on […]
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The Fintech Saga
November 8, 2018Financial Technology aka Fintech refers to the deployment of new technology and innovation to enhance the delivery of financial services. In comparison to the state-of-the-art technology at play in sectors like manufacturing, IT services etc, it is clear that Financial services is clearly lagging behind in the efficient use of technology to make lives better. […]
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Is Agricultural Credit India’s Subprime Story?
November 8, 2018If one has to pick an Indian equivalent of USA’s 2007-08 national banking emergency ‘subprime mortgage crisis’ it would definitely be the biggest component of targeted or priority sector lending programme: Agricultural Credit. Although the share of agriculture in Gross Bank Credit(GBC) in India at present is not as high as the share of credit […]
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