BUSINESS
Global inflation on the rise. Why aren’t central banks worrying?
Central banks are under pressure from rising inflation but so far they have brushed it aside as ‘transitory.’
BUSINESS
Finally, the European Central Bank moves beyond price stability
Compared to other central banks, the ECB’s tasks are more complex as it is a central bank of 19 economies. Having done the review, the markets will watch how the ECB will function with these multiple objectives
BUSINESS
30 Years Of Economic Reforms | Taking stock of Indian banking
Indian banking has come a long way since 1991. The private banks have played an instrumental role in this transition bringing new technology and products to the banking space. However, despite this, Indian banking is still a work in progress on some core issues
POLITICS
PV Narasimha Rao | A look-back at his political and economic legacy
PV Narasimha Rao’s legacy is obviously in the space of economic reforms which has been hotly debated and will continue to do so as we complete 30 years of reforms in 2021
POLICY
Implications of El Salvador’s tryst with Bitcoin
There is no doubt that El Salvador and its President Nayib Bukele have created a stir in the world of money. With El Salvador entering the Bitcoin field, will we see other economies joining the fray?
BUSINESS
Financial repression is making a comeback
It is interesting how financial repression has made a comeback against all odds. While the financial repression policies are being conducted differently compared to their earlier avatars, the broad idea is the same
BUSINESS
RBI comes to the rescue of Centre and states
While one can agree to these intervention in the pandemic year, it has to be seen whether it continues going ahead
POLITICS
Government must use RBI’s balance sheet to finance COVID-19 vaccines for all
The government needs to form an emergency interdisciplinary committee of experts to act quickly on putting the vaccine policy back on the rails. Let’s stop saying we don’t have the money to fund vaccines
BUSINESS
How the TRIPS agreement tripped in the vaccine lane
Within TRIPS, public health and access to critical medicine are always going to be more contentious issues
BUSINESS
M Narasimham was the doyen of banking reforms in India
The impact of the Narasimham Committee reports continues to weigh on the Indian banking system
TRENDS
Is China setting the future agenda for central bank digital currencies?
The Chinese policymakers realise that even if China is on top of the world economic order, it is highly likely that the USD will maintain its dominance
BUSINESS
Will RBI’s new inflation forecasting model help?
The tighter-than-required monetary policy during 2016-18 is often criticized for derailing Indian growth story; that’s why the new forecasting model assumes importance
BUSINESS
Should central banks target climate change?
Some purists argue that the central banks have earned their autonomy after years of inflation management, and should stick to the knitting, else risk losing their autonomy
BUSINESS
History of Money (Part III) | From Bitcoin to central bank digital currency
The 2008 financial crisis shook that central pillar of the monetary system: trust. Post-2008, economists started to scramble for it, and it was not a coincidence that Satoshi Nakamoto’s Bitcoin article mentions the ‘trust’ 14 times
BUSINESS
History of Money (Part II) | Currencies, banking and crises
In the initial years, the notes and coins were backed by the commodities such as gold, silver etc. This meant that volume and value of currency circulated were based on the value of gold/silver reserves held by the authorities which were mainly central banks
BUSINESS
History of Money (Part I) | From cowries to cryptocurrency
The Indian subcontinent had multiple kingdoms issuing multiple forms of coinage. When the British came to India, they realised that Rupee as a currency name was widely prevalent and stuck to it
BUSINESS
In push for privatisation, create fair markets and competition
It is not ownership but governance which should impact businesses. Unfortunately, successive governments have not been able to reform the governance mixing it with ownership
BUSINESS
Government’s cash balance is a jigsaw puzzle yet to be solved
The government has room to cut down its cash balances, given the rise in taxes and bond receipts. The release of the balances could lower interest rates whereas the additional borrowing pushes interest rates upwards
BUSINESS
15th Finance Commission: Largely status quo
The finance commission report is silent on the cracks in the cooperative aspect of fiscal federalism
BUSINESS
Do we need a new Development Financial Institution?
India’s inability to develop bond markets, which finance infrastructure worldwide, has again tilted the talks towards another DFI
MARKETS
Creative destruction in India’s stock markets will yield better results
One of the basic lessons of economics is that increase in competition leads to better market outcomes. Incumbents initially complain, but those who adopt the changes and fight new competition eventually grow as a firm. SEBI is trying to do the same in the MII sector
BUSINESS
Central Banking | The 2020s are increasingly looking like the 1920s
In the 1920s, central banks ignored Keynes’s advice, currently they have embraced the economist’s famous words: “In long run we are all dead”
BUSINESS
Two Goals, Two Lessons | What central bankers can learn from Diego Maradona
Diego Maradona’s first goal was akin to monetary policy of the earlier era where there was “mystery and mystique” associated with central banking. His second goal belonged to the modern central banking era
BUSINESS
RBI’s conflicting challenges in NBFC regulation
To make India less dependent on banks is one of the central goals of our financial regulators in the next decade
