A tangent on US Deflation
The CPI in the US has fallen by 1% in Oct 2008. This sparked
off a conversation about deflation, its costs,
causes, and
implications.
The costs are clear. With falling prices, firms will find it more and more difficult to make profits or break even. Given low or negative profits, they will be forced to cut costs further. This moves into a deflationary spiral.
What are the policy implications? One of the worst hit areas in a deflationary spiral is of course, monetary policy. As real interest rates [...]
The costs are clear. With falling prices, firms will find it more and more difficult to make profits or break even. Given low or negative profits, they will be forced to cut costs further. This moves into a deflationary spiral.
What are the policy implications? One of the worst hit areas in a deflationary spiral is of course, monetary policy. As real interest rates [...]
Guest post: Limited Liability Partnerships in India
This is a guest post by Varun Khandelwal:
India may introduce the Limited Liability Partnership (LLP) in 2009. LLPs function exactly like partnerships except that the liability of the partners in an LLP is limited to the contribution of the partner. A discussion on the LLP bill can be found here and the actual bill can be found on the Ministry of Company Affairs' Wesite.
What I find very interseting is the implications the LLP bill will have for the portfolio management/hedge fund industry. Currently, [...]
India may introduce the Limited Liability Partnership (LLP) in 2009. LLPs function exactly like partnerships except that the liability of the partners in an LLP is limited to the contribution of the partner. A discussion on the LLP bill can be found here and the actual bill can be found on the Ministry of Company Affairs' Wesite.
What I find very interseting is the implications the LLP bill will have for the portfolio management/hedge fund industry. Currently, [...]
Monetary policy regimes
Current global financial conditions have raised aspersions on
inflation targeting (IT) as a monetary policy framework, although
there is no evidence yet regarding the role of IT in undermining
financial stability due to an over-emphasis on inflation. The main
argument is that an inflation-targeting central bank focuses so
much on achieving low and stable inflation that its reaction
function has only output and inflation. IT generates an almost
mathematical focus on the short-term instrument [...]
Varun's blog
Varun Khandelwal of
Oxus
Investments has started a personal
blog on global
economic and financial conditions, often linking up to the Indian
context.
India and the new US president
NDTV Proft runs a daily show called "India and the new
President". This focuses on the contrasting ramifications for
Indian politics and economics under a Democrat/Republican
presidency in the United States next week.
This show raised some interesting questions. The emphasis seems to be on economic interlinkages between India and the US - for example, what impact will an Obama presidency have on outsourcing? (Obama has issued many press releases detailing his lack of enthusiasm for outsourcing [...]
This show raised some interesting questions. The emphasis seems to be on economic interlinkages between India and the US - for example, what impact will an Obama presidency have on outsourcing? (Obama has issued many press releases detailing his lack of enthusiasm for outsourcing [...]
