Republican candidate Donad Trump won a historical US election defying most of the predictions. The election is even more important for the rest of the World as it engaged with the increasing divide within the US like the Muslim immigrant issue. The entire election process was engulfed by controversies, religious divisions, ethnic differences and personal attacks. In the Congress also Republicans got control indicating more comfort for the new President. Trumps success was shocking for some, surprising for many and is a thoughtful one for Europe. The way in which he used the prevailing global unrest to win US mind will not go unattended by political leaderships in Europe. Mainstr
Can BRICS bring back rhythm in its usual attack against West dominated world economic order, especially after considerable conflict at the political level between the two stake holders – India and China? This year’s theme may be the retreat of the West from globalization. BRICS intellectuals especially in Beijing believe that there is concerted effort from Western countries to exit from globalization as it considerably helped countries like China to emerge as powerful economies. So far, all the BRICS declarations were full of the demand for reconstructing the West dominated governance structure of IMF and World Bank. Demand for local currency trade settlements and str
BRICS’ s Goa edition is expected to reflect the drift between India and China on the latter’s selective protectionism to Pakistan’s sponsorship of terrorism. The group may feel severe pressure to restrict its usual engagement of fighting the West. Indications are that Chinese involvement in supporting Pakistan’s stand on Uri attack may reflect in the meeting as well. Already, indicating strong polarization in foreign policy, India invited the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) countries to the meeting. Invitation to the Bimstec is quite symbolic. This means that India is ready to limit its cooperation w
After registering a one-year high, crude prices came down by a dollar in the international market on Tuesday. Cold response from Russian oil industry on production cut is cited as the major reason for the price fall trend. The new turnaround in the global market casts doubts about the strength of the new production cutting agreement between Saudi Arabia from the part of OPEC and Russia. Oil prices that jumped by 3 percent on Monday, after the Russia and Saudi Arabia reached a trend-setting deal bringing cooperation between OPEC and non-OPEC producers. But Brent oil futures fell to $52.84 on Tuesday from $53.73 on the previous day. The International Energy Agency also raised dou
On a surprising day in the foreign exchange market, the British Pound sterling – one of the leading hard currency for global transactions, trembled like a third world currency. The Pound lost around 6% in two minutes in Asian trading. Though it recovered later regaining much of the lost value, Pound'’s shocking uncertainty has generated suspicion in the minds of the market participants. During the day, Pound fell from about $1.26 to $1.18 in the space of two minutes though it recovered to $1.24. The British currency had enough woes ever since Britain expressed its willingness to exit EU. Pound, which is included under IMF’s SDR basket has already lost 5% agai
World’s macroeconomic observer – the International Monetary Fund cautioned that international debt has scaled up to a historical high level. Debt of the global economy has reached $152 trillion which is nearly two times the GDP of the world economy. The debt report was published under the IMF’s October 2016 edition of the ‘Fiscal Monitor’ that evaluates government finances and expenditure. IMF has a strong research division that makes extensive study about individual economies and the world economy as a whole. The Fund’s surveillance function is one of the most sophisticated activity by the seventy-year-old entity. Nearly two third of the debt
Bank of Japan has reinforced its monetary easing programme by introducing another innovative tool. This time, the Japanese central bank has set a cap on the 10-year bond yields. Over the last eight years after the financial crisis, central banks were innovating new policy instruments under unconventional monetary policy tag. The main component of the new ceiling of ten year bonds is the "yield curve control" under which the bank will seek to control short-term and long-term interest rates. Japan is going through sharp fall in economic activities reflected by very low GDP growth rate. Accompanying the poor income growth Japan is reeling under deflationary pressure. Japan’s
Government has approved the duty structure for Asia Pacific Trade Agreement (APTA)- a preferential trade agreement between six developing countries of Asia including China and Korea. As a preferential trade arrangement, the APTA gives a low level of trade liberalization. Tariff concession will not be substantial as in the case of usual free trade arrangements. Similarly, the number of tradeable goods under the agreement will also be limited. The APTA has six members at present – India, China, Bangladesh, Lao PDR, South Korea and Sri Lanka. Mongolia is trying to join the trade bloc. APTA is an initiative by the UN Economic and Social Commission for Asia and the Pacific for
Chinese President XI Jinping urged the BRICS safeguard free trade from the emerging trend of protectionism. He also called the group to continue its effort reform the governance of major world institutions. Xi was speaking at the meeting of the BRICS heads of states meeting at Hangzhou where the G20 leaders makes their first meeting in China. The Chinese President has already emerged as the iconic leader among leaders from the largest economies of the world with China showing symptoms of firm voice in world political and economic arena in recent years. The BRICS leaders usually assembles before the G20 meeting. This time also, Xi has demanded the group to raise their voice for r
The Apple Corporation was asked by European Commission to pay a record breaking tax and penalty of $13 billion as the EU Commision has found that its tax arrangement in Ireland is illegal. Both Ireland and Apple opposed the penalty and said that they will go for review petition. Apple had paid only negligible tax out of its profits from European sales. The sales in the EU were sourced through Ireland and given the tax arrangement called Double Irish, Apple was able to pay only 0.005% for considerable years. The Commission said Irish tax arrangement with Apple between 1991 and 2015 had allowed the US company to source its European sales to a “head office” that existed
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
- Why we need an emergency monetization plan as well?
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- NREGS: give respect to the tax payer’s money