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All that glitters is not gold
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| | November 16, 2009, 00:09 IST |
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The older I’m growing, the more difficult it is becoming for me to understand the rationale for some of the central bank’s decisions.
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For that perfect hedge
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| | November 07, 2009, 00:40 IST |
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We need a Financial Products Safety Commission to vet derivatives and their suitability for clients, to reduce the asymmetry in knowledge between buyers and sellers.
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SDR as reserve currency?
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| | November 02, 2009, 00:32 IST |
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In the last week’s column, I had quoted fund manager Avinash Persaud, World Bank President Robert Zoellick and UNCTAD on the probability/need for a change in the dollar’s status as the principal reserve currency.
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Curbing capital flows
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| | October 26, 2009, 00:48 IST |
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Last week, I had argued that “If there are problems in managing the exchange rate … because of capital inflows, the correct course is to curtail the latter: Too many countries have suffered by allowing the currency to appreciate because of capital inflows, and the current account deficit to become unsustainable (Mexico 1994-95, East Asia 1997-98, Argentina 2001)”.
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Finance as master
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| | October 19, 2009, 00:53 IST |
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While going through the Leaders’ Statement at the end of the G-20 Pittsburg Summit, I was struck by the fact that the leaders of the 20 largest economies of the world commented on the need for “reforming compensation practices to support financial stability”.
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Balancing exchange rates
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| | October 12, 2009, 00:41 IST |
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On a trade-weighted basis, the dollar has depreciated by 11.5 per cent over the last six months, principally against the euro, the yen, the Canadian dollar, and ‘commodity currencies’ like the Australian and the New Zealand dollars and the Norwegian krone.
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Banking on regulations
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| | October 05, 2009, 00:49 IST |
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Narrow banking isn’t even on the reform agenda — merging Merrill and BofA is, in fact, a move in the opposite direction.
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Full convertibility - II
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| | September 28, 2009, 00:40 IST |
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The greater the economic mess, the more the incentive to take money abroad — that, in turn, deepens the crisis.
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Financial regulation - The US model
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| | September 26, 2009, 00:41 IST |
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We need to be careful not to confuse financial market reform with following the US model of regulation, if finance is to remain a servant, not master, of the real economy.
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Full convertibility-I
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| | September 21, 2009, 00:27 IST |
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One part of the agenda for financial sector reforms is the question of full convertibility on capital account: In fact, both Percy Mistry and Raghuram Rajan committees stress/touch on it.
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Managing exchange rates
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| | September 14, 2009, 00:29 IST |
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Looking at sterilisation costs alone incorrectly assumes that non-intervention has no costs.
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Financial Regulation-III
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| | September 07, 2009, 00:32 IST |
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Robert Mundell, in an article in The Wall Street Journal.
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Financial Regulation - II
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| | August 31, 2009, 00:56 IST |
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Given the impact of the exchange rate on all aspects of the economy, it would be unwise to leave it to market forces.
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Financial Regulation - I
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| | August 24, 2009, 00:51 IST |
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I recently attended a lecture on ‘Financial regulation in light of the crisis’ by Dr Raghuram Rajan of the University of Chicago and the US’ National Bureau of Economic Research (NBER), arranged by the Reserve Bank of India.
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A 'U', a 'V' or a 'W'?
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| | August 17, 2009, 00:47 IST |
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There are signs that the US economy may resume growth in the current quarter: The fall in economic activity in the second quarter was just 1 per cent at an annualised rate, and unemployment in July has dropped from 9.5 per cent to 9.4 per cent.
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