Assorted Links

1. Ajay Shah throws some light on India’s pension system reforms. If there is so much delay on India’s most happening sector, I can’s talk about others.

2. WSJ Blog points out Fed has more ways to boost markets.

3. Rodrik points out to a blooper.

4. ET has an excellent profile of Dr. Rangarajan, Chairman, PM’s Economic Advisory Council. I like this one in particular:

Mr Rangarajan also has the patience of a good teacher who believes in explaining things painstakingly. Recently, ET asked him how policy makers determine the appropriate level of capital inflows from a macro policy standpoint. This has been hotly debated in the context of capital flows creating a rush of liquidity and stoking inflationary pressures.

Mr Rangarajan put it succinctly, “If your money supply growth target is 17%, then you have to determine what level of capital inflows are consistent with a 17% growth in domestic money supply. In my view, a net capital inflow of up to $26 billion, after meeting the current account deficit, is consistent with 17% growth in money supply.”

I am still thinking, how did that number $ 26 billion come from. I wonder, why didn’t his team explain these numbers and methodology for the same in the EAC report?

5. AV Rajwade on sub-prime.

6. CRISIL economists say agriculture growth to be around 3.2% to 3.6% in 2007-08. It is based on their DRIP methodology which measures rainfall deficiency in key regions and likely impact. I have my doubts whether agriculture can grow by that much.

7. Arvind Panagariya is bang-on on problems with Mumbai. This line says it all:

Intellectuals in India have been vigorously debating how to turn Mumbai into a Global Financial Centre by 2020. But they need to understand that this ambition is hollow if we cannot turn Mumbai into a global city. 

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