Category: Economy
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Currency warriors should consider India
At a time when all major economies are considering capital controls and protectionist trade practices, India – on the other hand – is surprisingly staying away from such measures.. It is true that India always had pretty much closed capital markets (especially the bond markets). However India’s resolve not to intervene in currency markets, and thus…
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The Fed – Doing It Again
Close to 2 years after the the first quantitative easing exercise from Fed, they are forced to do it again. But this time the opposition is fierce both from within the country and from other countries running trade surplus with US. Their concern is that dollar will weaken which will make their exports costly and…
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‘Bubble’ worries in Asia intensify – Equity Master
It must be worrying the central banks in emerging countries that an economic bubble is forming in Asia. With the outlook in developed economies still uncertain, foreign investors are pouring money into Brazilian bonds, Indian Equities and Chinese Real estate. The net effect is that emerging countries are finding their currencies appreciating rapidly. Exporters in…
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Powering India’s rural revolution
From kerosene to rice husks: Powering India’s rural revolution is a glimpse into the now famous “Indian Jugaad”. Business is booming in rural India. Every company is drafting business plans to design products that are based on sophisticated high performance technology, yet affordable to the rural poor. Some examples here highlight the innovation at work.…
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Stubborn China and the impending currency war
An excellent column from Martin Wolf about fighting the currency wars with stubborn China. China has become the nation with largest current account surplus in the world. It amassed more than $2.5tn reserves which are growing at $300bn per year. The impact on other high income countries, notably US, who are net importers of capital is devastating. Major economies are…