Archive for January 18th, 2008

Review of Indian economy 2007-08

January 18, 2008

Economic Advisory Council has released its review of Indian Economy (2007-08) . Its outlook for the year (2007-08) is here.

The review is the latest report on Indian economy. Most newspapers have covered the review: ET, BS, BL, Mint

I haven’t read the report and I will post if I  find anything interesting.

Update: My disappointment with EAC continues. The report is routeine suff and there is hardly any great analysis one could look at. Like it talks about decoupling/recoupling theory indirectly, it could have done some analysis how much would the impact likely to be. I know future of subprime itself is not clear but some models could have been extrapolated.

Similarly, it says exporters who have been competitive have been able to fight the rupee appreciation. It would have been helpful to know how much rupee appreciation has impacted etc.

Then it talks about inflation and possible rise if oil prices are revised upwards but doesn’t really give any idea on how much oil price hike would impact inflation etc.

I mean there are many questions in Indian economy which needs to be answered but we cannot because of unavailaability of data and expertise on analysing data. With such good economists on the panel having access to all kinds of data, one should get more ideas.


Assorted Links

January 18, 2008

1. Bernanke gave a testimony y’day before the Committee on the Budget, U.S. House of Representatives. Here is the summary and economists’ reactions. Bernanke seems to have also shown interest in some fiscal stimulus,though hasn’t indicated what type.

However, Econbrowser has an alternative view

2. After Possner, Lacker, Bernanke, 2 more join the “rising inflation is a concern” – Fisher (of Dallas Fed) and Sandra Pianalto (of Cleveland Fed). Despite this we are mostly sure to see rate cuts in next FOMC meeting on 29-30 Jan.

3. A nice humour by WSJ Blog – Bernanke as CEO.

4. Rodrik points to an article on how Ireland achieves its growth.

5. MR pointsto this article on WhyIndia lags behind China? 

6. JRV points to the latest US Supreme court decision.

7. Ajay Shah points cut rates now.

8. TCA proposes a solution for PHDs which must be applied immediately.

9. Martin Wolf has an excellent article on restraining bankers’ pay. It is high time to do something abt the crazy salaries and severence pays. I often wonder why would someone work when he knows his non-performance pay is going to be so high.

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