Friday 27 Aug '10In the early 1990s, stock market trading took place through the BSE floor by open outcry. On a good day, BSE members did Rs 400 crore of turnover and earned 2% off buyers and sellers, thus bringing in Rs16 crore per day of revenues.
Saturday 14 Aug '10When Indian socialism was constructed in the 1960s and 1970s, it induced widespread pessimism about the possibility of breaking out of the Hindu growth rate of 3.5%. The events of the late 1970s and early 1980s provided the first break, to a growth rate of 5.5%.
Wednesday 17 Feb '10In March 1940, the British introduced the first capital controls in India under wartime conditions. These grew into full-fledged controls in 1948 and thereafter, culminating in the draconian...
Saturday 28 Nov '09Dubai’s debt default underlines what has been apparent to careful Dubai-watchers for a while: that such an attempt at creating an international financial centre out of thin air was not going to work.
Saturday 07 Nov '09When the Berlin Wall fell, 20 years back, Eastern Europe began a project of economic development akin to what we in India have been engaged in. There were a few important differences when compared with what we have done.
Friday 30 Oct '09The recent speech by the RBI governor has some useful ingredients in financial reform. These small steps represent progress when compared with RBI’s stance of recent years of blocking all progress in finance.
Tuesday 20 Oct '09In India, it is being claimed that the role and function of RBI, as it currently stands, is the right way to address the goal of financial stability. It is argued that after the crisis, the world will discover the merits of the RBI model.
Thursday 27 Aug '09Seldom has an intellectual been as lucky as Ben Bernanke. He spent 23 years in an ivory tower, learning one obscure subject. And then he got thrust into the limelight, chairing the US Fed—he has now been renominated to serve a second term—when the challenge of the day was to put his 23 years of knowledge to work, to save the world economy.
Thursday 20 Aug '09The direct tax code is an outstanding piece of work in many respects. Long-standing distortions and inefficiencies have been addressed. There are two areas where certain difficulties are visible.
Thursday 25 Jun '09Financial regulators must take interest in how the incentives of bank managers are shaped by ownership, governance and compensation. But a mere focus on the level of compensation is giving in to the populist envy of the rich.