Category Archives: Economy

Endless deficits, mounting public debt, stagnant economies —time to get out of the illusion and face the reality! Only tough decisions will get the world’s economies out of trouble.

Austerity the word went so viral that Merriam – Webster has named it the word of the year for 2010. Ardent followers of Keynesian school have always believed in spending more to get out of precarious fiscal deficit situations. On the other hand, the followers of austerity believe that taking the hard way of cutting…

The current macroeconomic situation in the world can be summarized as many asset bubbles flying blind. The emerging economies are developing asset bubbles while the western ones are flying blind.

The mainstream media in India was busy analyzing the union budget in the first two weeks of March 2010. This annual event in India has lost much of its significance, as the Indian economy is not insulated anymore. Lack of fiscal prudence on the part of the union government was the salient feature of the…

Lack of conviction by governments across the globe to pursue austerity measures in monetary and fiscal policies could continue to play havoc on the global bond markets.

Lack of conviction by governments across the globe to pursue austerity measures in monetary and fiscal policies could continue to play havoc on the global bond markets. There is a clear decoupling emerging in the global economies when it comes to monetary policy. High inflation is forcing industrial producers to hike bank rates and tighten the…

The year 2009 would be known for bailouts and quantitative easing on an unprecedented scale and the year 2010 could witness street protests and riots on an unprecedented scale.

We tried to look back if such events, albeit on a lesser scale occurred in the past and we found a few marked instances that made us believe that history does repeat itself but with a little difference every time. Just as the means of warfare changed over time but war is still a fact…

The main events that could push and pull money.In the coming days could be the failure of Dubai world and the exceptionally good employment report in the USA.

The weather in the continent of monetary policy is showing some signs of change. The main events that could push and pull money in the coming days could be the failure of Dubai world and the exceptionally good employment report in the USA. The ramifications of these events would be discussed in detail in this…

Currency carry trades end suddenly causing asset bubble to burst violently and it would be prudent to stay invested in short-term debt and wait for the opportunity.

There have been many events in the monetary policy galaxy and most of them albeit high profile, are, at best distracters. The reason we brand statements by US president, Chief of PIMCO and the heads of the US and EU central banks as distractions is because every statement made by these people in influential positions…