Financial regulators must take interest in how the incentives of bank managers are shaped by ownership, governance and compensation. But…
The US has long had one of the more awkward systems for financial regulation in the world. A gigantic insurance…
Before derivatives trading began, NSE and BSE were all-electronic equity spot markets. By international standards, they were small markets. They…
Before derivatives trading began, NSE and BSE were all-electronic equity spot markets. By international standards, they were small markets. Derivatives…
The Congress victory has generated immense optimism for the outlook for the economy. How should the new finance minister, Pranab…
There is a superior alternative to closure in times of extreme movement. This is the ?call auction? market. We could…
Many people are optimistic about a rapid recovery for the world economy. This seems to be an unlikely scenario. While…
There is a common caricature in India, that RBI is risk-averse, while economic reforms are about risk-taking. However, a more…
There is a political backlash worldwide about the bailouts of financial firms in general, and the bonuses of employees of…
How much reserves should a country hold? Prior to the global financial crisis, these debates were a stab in the…
Figure 1 shows the time-series of the `VIX’, which measures the volatility of the US S&P 500 index. Vix is…
When the Great Depression came about in the 1930s, it presented an unprecedented challenge to the vision of open markets…
In August 2008, looking forward into the future, inflation was expected to be strong and growth was expected to be…
The downgrade by Standard & Poor reflects the growing realisation in financial markets that the Indian sovereign is in troublesome…
India has experienced a sharp decline in capital inflows. Figure 1 shows the sum of FDI and portfolio flows, measured…
With elections around the corner, fairness demands that the government desist from making announcements that will target narrow constituencies.
In the areas of the economy where regulation is necessary, a careful configuration of legal foundations, regulator, corporate governance of…
This is a time for cost cutting on many fronts: lower wages, economy class plane tickets, and meetings conducted over…
