The IMF, once a chief proponent of the deregulated financial system across the world and which criticized the developing countries like India for restricting the entry of foreign banks, now describes that India survived the financial crisis because it has restricted foreign banks. The IMF’s Global Financial Stability Report for October 2012 contains a Chapter assessing the financial architecture of the member countries. The chapter titled ‘The Reform Agenda: An Interim Report on Progress towards a Safer Financial System’ analyses that India and Malaysia along with Australia and Canada were able t
Samuel Huntington’s prediction of the clash of civilization had a miniature occurrence at the recent UN General Assembly meeting where the Muslim world has criticized the West’s attitude towards mixing freedom of speech with religion. The Foreign Ministers of the Organisation of Islamic Countries has attacked the West for the recent events lead to the release of the controversial film, ‘The Innocence of Muslims’. The divide between the two was very visible when the OIC members
The People’s Bank of China in three days has poured nearly $58 billion equivalent of Rm into the banking system to ensure adequate money. This is one of the largest in its central banking history given the short span of the time. The Chinese economy was witnessing scarce fund availability indicated by increasing lending rate in the short term money market. Chinese interbank market rate which is synonymous to India’s call money rate has sky rocketed to 4.75%. The People’s bank is following the intra cyclical policy of maintaining high cash reserve ratio to keep bank activities tight. This was necessary to ensure soft landing because of the threat
The BRICS heads of states meeting in New Delhi has produced some interesting developments, especially its politically hard stand against the west. This is happened when the world was watching how the BRICS which involves the future titans of the world economy can challenge the over dominance of the declining west. Of course, the leaders avoided depicting the BRICS as an alternative organization, correcting the wrong doings of the industrialized west. But overall, the meeting made a clear statement that on issues related with development and politics, the forum is going to make a stand of its own. The Delhi declarat
There is no doubt; the BRICS is an organization capable of changing the world economic affairs. Members of the BRICS community are the economic powers of the future. Adding to their prospects is the current trend of shrinking economies in the west, and thus the organization holds more glamour. The BRICS is in a process to chalk out mutually beneficial strategies to withstand the crisis emanating from the recessionary trends in the industrialized countries. As the heads of states of Brazil, Russia, India, China and South Africa meet in New Delhi, the world is watching the movement of th
Chinese Renmninbi is on the launch pad of being a world currency. The efforts by China to convert it into a hard currency substituting the US Dollar may reach a finishing point at the March end scheduled BRICS meeting at New Delhi. China already has adopted a clear stand against the US Dollar as the global currency and suggested that Dollar should be replaced by IMF’s Special Drawing Rights. It is not just the hard currency ambitions that motivate China to provide renmninbi loans to other BRICS countries. The country has a vast foreign exchan
The last fortress against global recession is coming down. Chinese premier, Wen Jiabao in his speech to the parliament has declared that the problems in the world economy are penetrating into the Chinese economy. He said the government cuts the targeted GDP growth rate for this year to 7.5%. The premier has described that the evolving financial crisis and structural problems in the domestic economy are posing downward risks. “The global financial crisis is still evolving. Some countries will find it hard to resolve the sovereign debt crisis anytime soon.” Wen commended about the situation. The C
India and China are having big potential in their bilateral trade. It is expected that both of them will lead the world economy in the coming decades. They are the fastest growing and they belong to the top 4 biggest economies of the world. China and India are the largest populated countries as well. Perhaps, the most important aspect from the trade point is that both countries share boundaries and this means that the scope for cross border trade is bigger. Justifying to these positive factors, India- China trade is growing at a high pace. Trade between the two has reached a figure of US $75 billion in 2011.
Europe’s campaigning for securing funds for Greek bailout from the rest of the world has got a set back as the G20 meeting asked Europe to construct a bigger firewall on its own. Over the last few weeks, Europe was making efforts to secure money from the G20 countries through the IMF route. Before the Mexico City meeting of the G20, many countries especially from the emerging world were passive to the EU efforts. At the same time, many of them were critical of the EU method of exerting additional pressure on IMF for sorting out the debt problem. In the G20 meeting, the European efforts got a setback mainly because of the rather surprising opposition from the US. The U
“The people, who were here yesterday, are not here today and will not come back” says a Malayalam funeral song. This is what is happening to the electronic industry right now. Kodak with its ‘golden moments’ is long lost after leaving nostalgic pains in the hearts of millions. Japan’s electronic industry is in a mess. Sony, Sharp and Panasonic have recorded a collective loss of US $17 billion in 2011. On the other side, fierce innovators are establishing from the new lands like South Korea and China. In nearly one hundred years of its history, the electronic industry was witnessing rapid changes over the last two decades. Computing and communication a
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Why the GST reform is transformational?
- Raghuram Rajan: The Gladiator returns to Chicago
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- Why we need an emergency monetization plan as well?
- NREGS: give respect to the tax payer’s money