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%.
Saturday 31 Jul '10The finance ministry is pushing all the listed companies to have a significant amount of outside shareholding. Does this matter? In order to examine this question, we focus on a sample of 1,262 companies traded on NSE.
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...
Tuesday 15 Dec '09In 1992, the ‘Bombay Club’ led a lobbying effort by domestic industrialists against removing trade barriers. It was a seductive argument. They said they were in favour of removing barriers to imports, but they first required ‘fair’ competition with imports on a ‘level playing field’.
Monday 14 Dec '09Trade integration has been an important source of prosperity and progress in the last 500 years. Some feel that the project of opening up the world to free trade is mostly finished, based on the extent to which tariffs have gone down and the extent to which goods from across the world are available in stores everywhere.
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.
Monday 12 Oct '09We should not be fixated on the dollar exchange rate of the rupee, for the greenback is not a fixed yardstick. From March 2008, when Bear Stearns died, and particularly after September 2008, when Lehman Brothers died, something very peculiar happened.
Monday 12 Oct '09From 2005 onwards, the macroeconomists of the world were worried about a different crisis: the dollar crisis. The US was on a path of building up external debt at an unsustainable pace, the flip side of which was the currency distortions in China and other Asian countries.