Finance

Asymmetric Information and Economic Policy

November 21, 2018

Consider 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 […]

Read More

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 […]

Read More

The Fintech Saga

November 8, 2018

Financial 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. […]

Read More
Indian Farmer

Is Agricultural Credit Indian Subprime Story?

November 8, 2018

If 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 […]

Read More