As early as October 2022, there were talks about how consistently the US dollar had been gaining strength over a period of 11 years even as the global economy reeled out of the Global recessionary phase (2007-09) and also faced the challenges posed by the Pandemic phase (2020-2021) making this the longest US dollar strengthening […]
Continue ReadingAccording to the International Monetary Fund (IMF), the outlook continues to be uncertain in view of the financial sector turmoil, high inflation, ongoing effects of Russia’s invasion of Ukraine, and three years of COVID which have now become sort of perennial issues with little hope about their settling down to the normal levels in any […]
Continue ReadingThe collapse of Silicon Valley Bank in the United States triggered a panic not only in its home country’s financial system but also in several other countries where many bank stocks had to bear the burnt as their shares plunged to lower levels. Last Thursday, the investors and depositors tried to withdraw a whopping $ […]
Continue ReadingRecently a researcher at Harvard Business School with a focus on the long-term sustainable growth dynamics of countries has observed that a new global economy driven by size is emerging and that economic competitiveness is determined by several micro and macro-economic factors. While the micro-economic forces influence how businesses innovate in a competitive environment, the […]
Continue ReadingThe Monetary Policy Committee (MPC) of the Reserve Bank of India has decided to Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.40 per cent with immediate effect and accordingly, the standing deposit facility (SDF) rate has been adjusted to 5.15 per cent and the marginal standing […]
Continue ReadingRecently the government raised concern about the possibility of twin deficit problem emerging in Indian economy. A twin deficit problem occurs when there is a simultaneous increase in both the fiscal deficit and the current account deficit due to factors that cause these deficits to widen as a side effect of one or the other. […]
Continue ReadingIn its recent Monetary Policy the Reserve Bank of India seems to have shifted its bias from growth back to keeping inflation within the tolerable limits. In the last two years the central bank has adopted accommodative monetary policy stance in tandem with the large scale economic stimulus and policy reforms introduced by the central […]
Continue ReadingA large number of countries in the World are trying to work out a twin pronged tax reform plan. According to the Organization for Economic Development and Cooperation (OECD),136 countries and jurisdictions representing more than 90% of global GDP have agreed to join an accord to impose this global tax reform plan. These constitute over […]
Continue ReadingThe central banks in most economies have twin objectives of maximizing employment/growth and keeping prices stable at around targeted levels. However, covid19 put forward an unprecedented syndrome to grapple with and most central banks, have tried to inject liquidity into their respective economies through lowering interest rates, buying bonds and easing out credit deployment and […]
Continue ReadingThe global economy seems to be making a gradual and uneven recovery from the unprecedented COVID-19 pandemic largely on account of the extraordinary policy responses by monetary, fiscal and regulatory authorities and the continued covid19 onslaught at varied pace and forms in different parts of the world. The focus of the economic stimulus in most […]
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