BUSINESS
Is the Japanese miracle coming to an end?
More than concerns over the fiscal deficit numbers per se, the challenges for Japan lie in the short-term international economic environment and more importantly, the chronic, long-term structural issues that Japan confronts
BUSINESS
How monetary policy triumphed over fiscal policy in the UK crisis
The Bank of England’s inflexible stand was in direct opposition to the fiscal stance of the Liz Struss government, ultimately forcing her downfall
BUSINESS
Why countries want to de-dollarize the international economy?
US monetary tightening is playing havoc with the world’s economies as the dollar is the main global currency. This has reignited a desire to end the dollar’s dominance in the world economy
BUSINESS
CBDCs: The fate of commercial banking rests with the State
The RBI’s concept note makes it clear that CBDCs can disrupt commercial banking and the choice of CBDC-type will determine the future of commercial banks, their role and even their existence
BUSINESS
Policy challenges to the unfolding crisis in India’s external sector
It seems inevitable that India will witness a slowing down in its real GDP growth rate as a response to the pressures in its external sector prompted by the actions of the US Fed
BUSINESS
How Japan leveraged commercial banks for high economic growth
Privatising banks is no panacea. Instead, India would do well to learn from Japan’s ‘window-guidance’ system that first identified which sectors are most likely to achieve national macroeconomic objectives and thereafter ensure that these sectors receive credit cheaply and to the extent required
BUSINESS
What Modern Monetary Theory (MMT) has to say about freebies
Critics of MMT have portrayed it as a supporter of unrestrained government spending. In reality, though, MMT has always placed emphasis on the opportunity cost of government expenditure, which diverts resources from other sectors
BUSINESS
Can privatisation crowd out net real investment?
Privatisation can ‘crowd out’ new or greenfield investment, as there is no new physical capital being created
POLITICS
Evoking India’s twin deficits: a flawed guide to policy
While the logic of the twin deficit problem may make intuitive sense, it is at best an incomplete equation that does not reveal an accurate picture of the economy
BUSINESS
Does monetary policy really work?
By targeting aggregate demand across the whole economy, monetary policy may be too blunt an instrument to tackle the ongoing inflationary pressures in the economy, instead adding to the already chronic high unemployment rates in the country
BUSINESS
Why is the US Fed inducing a recession?
The real reason for trying to slow the economy is to ensure that wages do not rise rapidly. That is why the state of the labour market is key to US monetary policy
BUSINESS
Will Sri Lanka’s new President be able to turn around its beleaguered economy?
At the core of the crisis is a dollar shortage caused by the island’s high reliance on imports and the lack of the economic complexity to diversify exports into high value-added products or bring in sufficient dollar inflows
BUSINESS
The US dollar will remain the only global reserve currency
The countries whose currencies are considered as the most likely contenders to end dollar dominance are the ones which run large current account surpluses; how can they provide liquidity to the rest of the world?
BUSINESS
Why Russia should fear appreciation of the ruble against the dollar
The appreciation of the ruble has resulted in a loss of oil revenues of around 27 percent, apart from the discounts that have to be offered to Chinese and Indian buyers
BUSINESS
Digital Rupee | Will commercial banks still be needed for credit creation?
With the digital rupee, the RBI would be able to the increase the effectiveness of monetary policy by directly changing interest rates on deposits and/or lending
BUSINESS
Digital Rupee | Will people still deposit money in commercial banks?
While the consequences of CBDCs on cryptocurrencies like Bitcoin and Ethereum are attracting widespread attention, it is the possible repercussions of CBDCs on the commercial banking system that could be far more disruptive
BUSINESS
Budget 2022 — Focusing on economic growth
Government uses the Budget as an instrument of structural reforms
BUSINESS
Budget 2022: Is there really a need for fiscal consolidation?
Rather than appreciating the positive role played by fiscal policy, economists are once again attempting to script a return to a world where the governments recede into the background and market forces dominate
BUSINESS
The government must adopt expansionary fiscal measures in Budget
A revival of strong growth will automatically check the deficit through higher tax collections
BUSINESS
Lessons for India from the Turkish Lira crisis
The Turkish experience illustrates the repercussions of capital account convertibility on exchange rate volatility and imported inflation that completely obliterates any independence over fiscal and monetary policies
BUSINESS
Who will be the new Chairperson of the US Fed?
Will US President Joe Biden extend the term of the present Chairperson Jerome Powell, or will he appoint Lael Brainard, a member of the Fed’s Board of Governors? This is not simply a choice between two economists, but a political choice between them and their deeper social and political convictions
BUSINESS
The pros and cons of RBI’s massive build-up of forex reserves
Given the ample forex reserves for precautionary purposes, it can be inferred that accumulation of reserves is mostly to ensure that the rupee remains depreciated to sustain exports
BUSINESS
Will cryptocurrencies replace gold as an asset?
Essentially, bitcoin and other cryptocurrencies are no different from gold, apart from the fact that central banks are yet to hold them in the reserves
BUSINESS
The challenges in using monetary policy as a countercyclical strategy
Monetary easing may have helped the global economy escape the worst effects of COVID-19 but questions remain on the ability of interest rates to influence maximum employment with price stability
