The Reserve Bank of India (RBI) is precariously balancing two opposing objectives - maintaining easy financial condition in the domestic market, while ensuring external stability - and economists have started taking note. They say India is going through the classic trilemma of the 'Impossible Trinity'. The RBI cannot have an independent monetary policy (setting domestic interest rates) in an environment of an open capital account and flexible exchange rates. What is even more complicated for the central bank now is that financial market stability overlays all the other three objectives.
The Budget tried to please politicians, rating agencies and reformists, and let them all down -- slightly.
To first take a position that the currency would be managed, and then to witness it fall, is a grave loss of credibility for any government, and for any central bank.
The question is whether this would mean any change in IMF's policies, particularly on the question of what to forgo out of the impossible trinity of an independent monetary policy, managed exchange rates and a liberal capital account.
According to HSBC, the volatility in Indian markets since May can be attributed to the initial talk about tapering of bond purchase by the US Federal Reserve but the catalyst for recent volatility in Indian equities was when policymakers decided to tighten liquidity to stem capital outflows.
Amartyada, says Omkar Goswami, thank you for being the humane, caring and socially concerned economist that you are.
An action on the rate front is unlikely to figure in Rajan's plan for the moment.
An asset swap can simultaneously boost public investment, reduce the fiscal deficit and keep fiscal policy from being pro-cyclical.
Aseem Chhabra rates the movies he's watched in 2023, and tells you where you can watch them!
The immediate concern for the rupee is the sharp spike in oil prices
Modifying its June 18 order in which it had said that this year's Yatra cannot be allowed due to the COVID-19 pandemic, the apex court permitted holding of the Yatra after taking note of Odisha government's stand that it 'can be held in a limited way without public attendance'.
"It is a matter of faith for crores. If Lord Jagannath will not come out tomorrow, he cannot come out for 12 years as per traditions," said Solicitor General Tushar Mehta, who mentioned the matter before a bench headed by Justice Arun Mishra.
Dangal's success in China opens up the world's second-largest film market for India. But there are risks, warns Vanita Kohli-Khandekar.
Dangal's success in China opens up the world's second-largest film market for India. But there are risks, warns Vanita Kohli-Khandekar.
Director Matt Brown tells Aseem Chhabra/Rediff.com what it was about The Man Who Knew Infinity that made him persevere for a decade to turn the book into a film.
Siva Sankar looks at S P Balasubrahmanyam's fantastic repertoire.
Historian Stanley Wolpert, author of several books on India, passed into the ages recently. We remember Professor Wolpert with Rajeev Srinivasan's March 1997 interview published on the occasion of his controversial book on Jawaharlal Nehru.
Can 2018 top its predecessor in Sporting Glory?
Chief Economic Advisor Arvind Subramanian spoke on a wide range of issues -- from GDP growth and fiscal consolidation to job creation and GST.
Partially paralysed but with unbreakable will power and determination, Nihad Panju has beaten the odds to become a fitness freak and is all set to run his 4th Mumbai Marathon on Sunday.
Anu Malik's daughter Anmoll tells us what it is to be a daughter of a famous daddy.
No one even comes close to the impact Anil Kumble has had on Indian cricket, when it comes to winning matches and series, say Aakash Chopra and Impact Index.
