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Welfare programmes change people’s behaviours
Many people like to envision worlds where the State will tax the rich and help "the needy" - this ranges from free health care to unemployment insurance to disability insurance, etc. There are many problems with these schemes. One of them is the fact that people respond to incentives. We are #Employment law #NREGA #Welfare economics #WelfareState
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No cause for cheer: inflation is actually trending up
In recent months, there has been a surge of optimism that the inflation crisis is coming to an end. However, a careful look at the seasonally adjusted data reveals that there is cause for concern. In September 2011, point-on-point seasonally adjusted (annualised) inflation was at 17.49 percent. The year-on-year #ChartView #CPI-IW #Inflation #RBI monetary policy
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Gujarat innovates a new trail in Right to Education
by Parth Shah. One major initiative of the Indian government, in the field of education, was the Right to Education Act of 2009. This act has major problems, as has been argued by numerous observers and experts in the field. This Act focuses on the interests of #Gujarat #Gujarat RTE Rules #Knowledge #Right to Education
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Some interesting readings
The Anna Hazare silliness is depressing. Writing in the Indian Express, Shekhar Gupta has an interesting angle on why there is so much interest in this snake oil. India's $2 trillion economy means we have to reform faster by R. Jagannathan on FirstPost. Meera Subramanian has #Books We Like
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The US takes to inflation targeting — and how!
Reportage by Robin Harding and Michael Mackenzie in the Financial Times: The rate-setting Federal Open Market Committee predicted low interest rates until late 2014 and set a formal inflation objective of 2 percent, reflecting Chairman Ben Bernanke’s long-held goal of providing greater transparency. The #Ben Bernanke #Inflation #NotJobsButPassion #Paul Volcker #US Fed
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Land ownership as a curse: How India’s landowners lost out
Land ownership in pre-modern India In India, 50 or 100 years ago, land was a defining feature of wealth. The stock of land generated a flow of income. The landless were low-paid agricultural labourer. The landed gentry of rural India were the kings of their heap. They had power, prestige, position, #Capitalism #Economy of India #India #NotJobsButPassion #Rural Landowners #The Long View
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Uncomfortable times coming up in real estate?
Patrick Chovanec has a fascinating article in Foreign Affairs, titled China's Real Estate Bubble May Have Just Popped. This is interesting and important from two view points. First, bad news for China is bad news for the world economy. We are already in a bleak environment, with difficulties in #bank loans #China #India #NotJobsButPassion #Real estate bubble #real estate sector #Realty Bites
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Business cycle effect: Why our growth will be volatile
There is a lot of gloom in India today about the broad-based failure of the UPA strategy of combining left-of-centre populism, fiscal profligacy, theft, and a lack of interest in the foundations of India's growth. We learn from history that we learn nothing from history; India has clearly learned very little #Business cycle #GDP growth #Inflation #Monetary policy #NotJobsButPassion #The Long View
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The RBI should forget forex rates and focus on inflation
The rupee: Frequently asked questions Q: How big is the market for the rupee? The rupee is now a big market. Summing across both spot and derivatives, perhaps $30 billion a day of onshore trading and $40 billion of offshore trading takes place. Both these markets are tightly linked by arbitrage. In #Currency Trends #CurrencyWars #NotJobsButPassion #Rupee versus Dollar
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A guide to the eurozone crisis
Guest post by Percy S. Mistry How did it happen? The worst financial crisis in the western world for nearly 80 years broke in September 2008. It required banking/financial systems to be supported and recapitalised by governments across the EU and in the US. In June 2009 it became apparent that the peripheral #DebtCrisis #Emergency Economic Stabilization Act #Eurozone crisis #NotJobsButPassion