- Who’s afraid of a big current account deficit?
- What is the CAD?
- What if there was no capital account?
- Should we bemoan the large Indian CAD?
- A big CAD got us into trouble in 1991. Won’t that happen again?
- Why won’t all channels choke all at once?
- What kinds of foreign investors respond the most to rupee depreciation?
- Why is a large CAD seen as a big problem?
- What is the role of MOF or RBI in ensuring adequate capital comes into the country to match the CAD? Continue reading “The Current Account Deficit of India (CAD)”
Yesterday RBI said:
– reduce the marginal standing facility (MSF) rate by 75 basis points from 10.25 per cent to 9.5 per cent with immediate effect;
– reduce the minimum daily maintenance of the cash reserve ratio (CRR) from 99 per cent of the requirement to 95 per cent effective from the fortnight beginning September 21, 2013, while keeping the CRR unchanged at 4.0 per cent; and
– increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.25 per cent to 7.5 per cent with immediate effect.
You did not understand that? Neither did I. Continue reading “RBI policy On a different note”
Was just looking on the inflation numbers and realized the food prices are up by 18.2% on the year, and this was led by a mind-blowing 245% annual rise in onion prices.
Sharing some of the crazy things we’ve seen around India in the aftermath of soaring onion prices.
- Onion Groupon Deals: Groupon India offered onions at Rs. 9 for a kg, in response to surging onion prices, and the offer caused the site to crash. This represented an 85% discount to a market price of Rs. 60 at the time the deal went live. It was the first time Groupon India had a deal on onions. Continue reading “India and the Onion”
Well I am back. Before featuring to the outside world lets focus on the last two weeks that were vibrant for the India. I hardly watch news on television but during these days the only source of information was television and the Indian media.
Sharing some of my thoughts – The Media left no stone unturned to ensure that the TRP rights will be on peak showcasing the BJP (India’s biggest opposition political party) internal disputes and the naming ceremony of Mr.Narendra Modi as Prime Minister Candidate.
It’s well known Mr Modi is a famous and controversial figure in this country. To be honest the media showcased the story as if he has become the PM of this country. Continue reading “Modi – India – Rupee – Raghuram Rajan”
It would be too harsh to put that the Indian economy is facing one of the worse situation in the last 20 years .
The FT published a Misery, Indian edition Index indicating fears over policy ‘credibility’ could send the Sensex in such a spin on Friday — India’s benchmark closed down almost 4 per cent — and trash the rupee…according to them this isn’t the classic misery index — for India substituted industrial production for unemployment data, which are lacking — but it’s the first time in over twenty years that it has remained stuck at such a high level, they note. Continue reading “The Indian economy is ‘miserable’ at the moment”