The award of Nobel Prize to Oliver Hart and Bengt Holmstrom for economic science brings to light the concept of ‘Contract Theory’, hardly heard so far, let alone be understood..! As per the survey by the institution awarding the prize, 56% of the people did not know about ‘contract theory’. A brief attempt to understand … Continue reading Economics Nobel Prize – Understanding 'Contract Theory'..
Global economy continues to remain under firm grip of debt as per an IMF report published earlier this week. As per the report, global non-financial debt has risen to an all time high of $152 trillion whereas Debt/ GDP ratio stands at 225%. And the culprit, it says, continues to be private sector debt in advanced … Continue reading How bad is Global debt overhang – IMF Report.
Bankruptcy of Hanjin Shipping line, among the top ten shippers globally, about a month back reflects the continued stress in the shipping industry. However, Indian shipping companies appears to have turned the corner aided by continued domestic demand and an assured domestic market. Shipping industry, among the oldest industries in the world, remains under stress since … Continue reading Industry Analysis – Shipping Industry
The World Economic Forum’s Global Competitiveness Index (GCI) rank at No 39 is a great news for India and government’s ceaseless efforts to improve the business climate. This is the second consecutive year of improvement, incidentally, with climb of 16 ranks in both years. The ranking carries considerable significance as this is the most comprehensive index comparing … Continue reading The Giant Leap for India..!
India’ decision to ratify the Paris Agreement on reducing global warming is an important development, though, just the beginning of a long drawn exercise. The agreement reached in Dec last year aims to restrict the increase in global temperature to “well below 2 degree” and “close to 1.5 degrees” above pre-industrial level (1880). While the agreement is not … Continue reading Paris Agreement and India's Commitment – A brief..
Release of balance of payment figures for quarter ended June’16 by RBI today brings some good news for the external sector. Even though net addition to foreign exchange is lower, performance on current account, particularly non-oil trade records an improvement over last year. Major features are: Current Account – Only a marginal decline of 0.2% … Continue reading International Trade – Q1'17 Performance..
Japan adopted Negative Interest Rate Policy (NIRP) earlier this year after other monetary tools failed to spur economy and bring it out of deflation. Rather than having the desired effect, NIRP has actually had an opposite impact on some of the economic variables so far. Yet, Japan’s Central Bank has expressed its commitment to the policy to be … Continue reading Explaining Negative Interest Rate – Japan's case..
International trade as a tool of growth was recognized little late by the country with concrete efforts to boost merchandise exports taking place only over last about two decades. As a result, there was a strong exports growth since about 2000, resulting in growth of almost 20% CAGR during FY00-FY12 period. Exports crossed $ 300 … Continue reading India Exports – Changing Composition..
Food and Agriculture Organisation (FAO), in collaboration with OECD (Organisation for Economic Cooperation and Development), released its report for the period 2016-25. The report projects an end of era of high prices for most of the sub-sectors, main crops, livestock, fish and dairy products. The decline is achieved through higher supply induced thorough high demand growth over … Continue reading No end to hunger yet – FAO report..
Imagine a country called “United States of Europe”..! Imagine all the EU (European Union) countries gradually letting go of their task of governing themselves in favour of a centralized body, to be called Central Government currently the EU Parliament. And… Can we imagine Britain being a part of such a country..?? This is crux of … Continue reading Brexit… To leave or not to leave..!