Rajan slams banks for 'hiding' NPAs
“At least I hope my own bank does not charge me. I will not withdraw and keep money for... »
A Revisit >
January 21, 2014
The CAG model, where the auditor has no links with the firm, is worth following. »
To share a few random thoughts (as a common reader, a lowly one amongst the multitudes):
One thinks, there could be no genuinely serious dispute or counter view on the point that such matters are fundamentally of vital importance and practical significance , impacting , many times impairing, the economic performance of the nation, more so in the larger ever changing and superimposing global scenario. Also on the related aspect that the media's role is, by and large, presently confined to dissemination of information amongst the readers (of dailies) and visitors (of websites). Who mostly, with the only exception of very few economists / financial experts- self-professed or otherwise, are, as may be readily imagined, not at all equipped in any manner to even understand as intelligently as assumed or taken for granted, much less to offer or make any useful or truly valuable contribution, that could serve or sub- serve , even remotely, the basic object of such dissemination of information. It is one thing to say that people's participation, active or pro-active or otherwise is a necessary concomitant of vibrant democracy. But it is completely different to view it from the ultimate usefulness of such participation. Be that as it should not have been expected to be otherwise, for varying reasons, what is noted is that even the few economic experts do not seem to mutually or substantially agree on any issue; but widely differ; for that matter, often going off at a tangent. In short, the suggestion for consideration is this: - Should not the media, if not already being done, at least, on a selective basis, desirably make it a point to start the practice of continuously keep posted the government, on a day to day basis, through direct communication, effectively and intelligibly, the views and counter-views of the known experts, so that that could be expected to be a purposeful endeavor.
In the hope of having conveyed the crux of the thoughts, reasonably, - over to the media for an earnest deliberation!
Old Maths X Modern Economists >
Money and the magical mathematics of Brahmagupta ...
People are generally more confident when the economy is stable and growing. And as a rule people are more willing to borrow when they are confident. Therefore when times are good both borrowing and spending rises creating a self-reinforcing boost to economic activity. The process of borrowing and spending becomes a self-fulfilling, positive feedback loop. The more we spend the more we borrow, the more we spend. Put differently there is a paradox of gluttony whereby the more we consume the more we can consume.
Unfortunately this process also works in the opposite direction. If confidence falls we begin to reduce our borrowing levels by paying down previously accumulated debts. This removes spending power from the economy thereby reducing economic activity, providing a self-ratifying justification for the original fall in confidence. This is Keynes’s famous self-reinforcing paradox of thrift – the less we spend the less we have to spend.
·Classical Conditioning (Pavlov) | Learning Theories
According to Keynesian theory, changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run effect on real output and ...
Keynes's theory of the determination of equilibrium real GDP, employment, and prices focuses on the relationship between aggregate income and expenditure.
Definition of Keynesian theory: An economic theory named after British economist John Maynard Keynes. The theory is based on the concept that in order for an ...
The RBI Annual Report rightly points out that even to grow at 7 per cent, inflation needs to fall sharply »
The RBI makes an effective case for continuing with sectoral regulators. The new government should pay heed to its views »
The RBI has taken a medium term view of inflation, without being swayed by the recent numbers to lower rates »
Central to the financial sector reforms would be the restructuring and financing of public sector... » 1 comment
Confusion over Territorial Jurisdiction in Cheque dishnour cases
Reserve Bank of India takes regulatory steps forward
By way of a notification issued on September 17, 2014, the Reserve Bank of India (RBI) has now allowed......However, this is subject to compliance with the terms and conditions of the FDI policy, including sectoral caps, pricing guidelines, etc., and also applicable tax laws.“........remittance of which does not require prior permission of the Government of India or Reserve Bank of India under FEMA, 1999 or any rules/regulations framed or directions issued there under”.“.....However, this is SUBJECT TO COMPLIANCE WITH THE TERMS AND CONDITIONS OF FDI policy, including sectoral caps, pricing guidelines, etc., and also applicable tax laws."<> NO(ooo) doubt, this is prima facie a liberalization measure, which is tantamount to the lately repeated gimmick of roll back to certain extent, of the erstwhile rigid requirements. However, going by one’s own understanding, the so-permitted issue of shares through the so-called “automatic route”, and that too limited to/ against “legitimate dues”, if perceptively viewed , is noted to have mindlessly, and with no purpose to be served, is tagged on to certain requirements, in fine print. The not-so-obvious imponderables, in the “form of terms and conditions”, are left to be gathered from the rider:
“.....However, this is SUBJECT TO COMPLIANCE WITH THE TERMS AND CONDITIONS OF FDI policy, INCLUDING sectoral caps, pricing guidelines, etc., and also applicable tax laws.”
The point in mind is this: Despite such shares issue being allowed via the “automatic” route, it is nonetheless kept open to be gone into/questioned, in hind sight, on anyone or more of the indicated grounds. For that matter, whether or not a given case falls squarely within the parameters of so-said “legitimate dues”, by itself, is an area fraught with obvious impracticalities; may be, requiring a detailed probe/investigation by an authority adequately equipped i.e. for no less than CBI or CFI.
Open to EDIT; and to share differing views, if any.
Guest Post: Guarantee Against Loan from Banks and Financial Institutions
News for times special the rajan interview
- RBI Governor Raghuram Rajan warns of global market 'crash'
Cross Refer > Prev. Blogs on 'banking'