Tag: economy
-
India is not alone in higher fiscal deficits
An interesting graphic from NYTimes shows the risind debt levels in Euro zone. India currently has a debt-to-GDP ratio 80%. Luckily, close to 85% of the debt is domestic and hence has less exposure to currency risk or recall risk. It turns out that Euro zone is doing equally bad. The debt-to-GDP ratio, is more…
-
Playing hardball with China
Krugman, in his Op-Ed column in NYTimes, wanted the US government to impose 25% duties on Chinese imports. That opinion may sound as protectionism, but something drastic will happen soon with international trade. China is known to keep its Renminbi artificially low and make the exports competitive. Now the matter has come to a head.…
-
Japan's lost decade
Japan’s economy, stagnant for 16 years, is facing challenges quite different than those from US and Europe. There is no housing bubble or credit crunch in Japan. After a decade of stagnant and deflation ridden 90’s, Japan’s economy started improving in early 2003. But this time the industry has wrongly bet that the Yen will…
-
Swiss dilemma over currency
Switzerland’s Dilemma is perhaps unique in these markets. Traders in other markets are taking shelter in the safety of Swiss francs. Swiss currency appreciated rapidly in this year creating undesirable effects for the Swiss economy. Now the country wants to devalue its currency. In a unique case they have very limited options. Swiss economy is…
-
Recession in pictures
The recession is here. Although we read and hear the news about recession every day it is painful to see it in pictures and what people are going through. What struck me is the pictures are drawn from all across the world in US, UK, Kazakistan, Ukraine, China, Lebanon etc. So if any one says…