BUSINESS
PM Modi's four castes and when I almost wrote the Budget Speech
The author came close to predicting the theme of the budget in his earlier column. Here he does a status check of his expectations, government policies and what the FM Sitharaman delved upon in her speech
TRENDS
Was Adam Smith’s ‘invisible hand’ a precursor to Artificial Intelligence?
IMF’s Gita Gopinath, in a speech, cites that if AI leading to productivity growth, which determines the wealth of nations, would have pleased Adam Smith, AI’s potential impact of job losses and fake news deepening social divide would have deeply troubled him.
BANKS
Customer service standards at banks in need of an overhaul
The committee has recommended that the RBI move from rules-based regulation to principles-based regulation. Currently, the central bank mentions specifics about customer service, which leaves gaps.
BUSINESS
MC Explains: The Great Indian Poverty Debate
A slew of recent research papers that offer opposing viewpoints has reignited the old debate --- has poverty in India diminished or increased? Moneycontrol examines the issue.
BUSINESS
Explainer: The US Federal Reserve’s Bank Term Funding Program
The programme will make liquidity available to US depository institutions in the form of advances against certain types of securities as collateral.
BUSINESS
MC Explains| The unfolding crisis at Credit Suisse and its impact on financial markets
The impact on India’s financial markets may be muted because they are not as interlinked with global financial markets as those of some other countries. But there will be a negative shock, possibly leading to a further slowdown in economic growth.
COMPANIES-2
MC Explains | SVB implosion: Will the noxious fumes blow over India?
There will be some impact, even if muted. If financial markets in the West continue to decline and there is a recession, it will impact Indian financial markets as well and result in lower growth rates.
WORLD
MC Explains | Common Currency for Latin American: Neymar and Messi in the same team doesn’t always work
CELAC will have to engage in economic integration and achieve macroeconomic stability for a long time before thinking of a common currency.
WORLD
US hits debt ceiling: Here's what it means and way forward for the government
If the US Congress does not revise the debt ceiling and the time period lapses, the Treasury can manage the crisis and avoid default by using extraordinary measures.
WORLD
MC Explains | Pakistan's economy, which once outgrew India’s, now sinks. What went wrong?
While the recent shortages in Pakistan have made headlines, the country has been living in crisis for a long time. It has sought the help of the International Monetary Fund 23 times.
BUSINESS
Explainer: What is the Indian government’s green bonds programme?
Sovereign green bonds are issued by governments to raise resources to support climate-related or environmental projects. However, investors may need clarity on aspects such as interest rates, liquidity and trading.
BUSINESS
MC Explains | What is the RBI pilot programme for a retail digital rupee?
The RBI and commercial banks will form a closed user group comprising participating customers and merchants. The banks will distribute the digital rupee to the user group in the form of tokens in the same denominations that paper currency and coins are currently issued
BUSINESS
MC Explains | Indian municipalities and their finances
A recently released RBI report shows that nearly all the municipal corporations in India are struggling financially and highly dependent on support from state and central governments.
BUSINESS
MC Explains | What’s the reason for recent gold rush among central banks
Central banks were net sellers of gold from 2002 to 2008 and have been net buyers since 2008
INDIA
MC Explains | Why Ben Bernanke's economics Nobel for bank crisis work is creating a storm
Although the Nobel committee says the research reveals how regulating banks and propping up failing lenders with taxpayer money can avert a financial and banking crisis, critics point out one of winners Ben Bernanke was a major contributor himself to the 2008 global financial crisis as the US Federal Reserve chief.
BUSINESS
MC Explains| Should RBI establish a forex swap line with Federal Reserve?
The rupee has been under depreciating pressure against the dollar for nearly 6 months now, contributing to the depletion of India’s foreign currency reserves. One way out could be a temporary swap line with the Federal Reserve.
WORLD
UK crisis: Drawing parallels with the pound's collapse 30 years ago when George Soros made a killing
The current exchange rate crisis has put the UK and Europe in the spotlight, as it did in 1992 when investors and speculators had run on the British unit, costing 3.5 billion pounds. But this time, the government is not intervening to stem the currency's fall.
BUSINESS
MC Explains: What the RBI can do to rein in rupee’s depreciation
If the RBI wants to counter rupee depreciation, it should continue to improve macroeconomic fundamentals and take measures to increase capital flows into the country
BUSINESS
MC Explains | Why China is facing an economic crisis and how India can gain
There are fears of a meltdown of the Chinese economy and its banking system as the stringent Covid-19 lockdowns in key manufacturing hubs have led to a slowdown of the economy. The Chinese crisis provides an opportunity for India to project itself as a global manufacturing hub.
BUSINESS
MC Explains | Has the relationship between inflation differentials and exchange rate movement broken down?
We are at a rare moment in economic history when the inflation rate in developed economies is higher than the inflation in developing economies such as India. Yet, the rupee continues to depreciate against the US dollar. Moneycontrol explains the trend
BUSINESS
Explainer: Should RBI opt for a multi-tier excess reserve system?
This explainer will help you understand the surplus liquidity situation in the markets and whether a multi-tier excess reserve system can help address the problem.
BUSINESS
MC Explains | India does not face an external debt crisis
India’s Debt Service Ratio, a measure of a country’s ability to service debt given current receipts, has declined from around 40% in the 1990s to around 5% today.
BUSINESS
MC Explains | Will steps to liberalise forex inflows help the rupee?
The outflow of funds leads to higher demand for the dollar and thereby, local currency depreciation. While a depreciating currency helps a country’s exports, it makes imports more expensive and feeds inflation
BUSINESS
Explained | Why Japan’s inflation problems are of a different kind
Japan's inflation has remained low as economic activity has remained persistently weak.
