Archive for May 15th, 2013

Why choose WPI for inflation indexed bonds?

May 15, 2013

Finally, after many years of deliberation Govt/RBI have decided to launch inflation indexed bonds (IIBs). It was announced in the budget 2013-14 but has been under consultation for a very long time. The launch is based on this technical paper. I will try and release a simplified version if possible.

The choice of index for inflation remains WPI despite having a new CPI. What is the purpose of new CPI then? Yes it does not have a time-series as old as WPI but we are not really talking about using CPI from a historic perspective. If the bond is issued today we are going to use CPI series from hereon.

The technical paper says:

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Politics 2.0: The Multifaceted Effect of Broadband Internet on Political Participation

May 15, 2013

Filipe R. CampanteRuben DuranteFrancesco Sobbrio write this paper which must be read by Aam Aadmi Party (and other new parties if any) people in India. It is actually a must read for all interested in how and whether internet can influence political participation.I have just written an article on the hopeless state of affairs in India’s political system. Based on this paper, internet can help give people some better political choices in years to come..

The authors base their study in Italy. They show internet first leads to lower political participation in Italy and then over the years leads to rise in participation.  It is like this U-curve you see with most things in economics. It declines first and then rises:

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From writing Shiva trilogy to advocating decentralisation in India…

May 15, 2013

I got curious on seeing this piece from Amish Tripathi while flipping HT yesterday. I was interested in knowing how the Shiva trilogy guy (haven’t read any so far :-() writes on this very complex issue of decentralisation in India. I must say the article was really good. Tripathi sticks to the subject he knows best – history.

He says India has been a decentralised regime for most part of its history:

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The Resurrection of Indian Congress !!??

May 15, 2013

I am really miffed to read such articles. That too by likes of Dr Shashi Tharoor. One would imagine that people like him would bring a breath of fresh air to Indian politics but it is all so stale really.Though, I have not been impressed with his recent articles as well and this one is just an addition to the growing disappointment.

Indian politics clearly converts the best of the lot as I even pointed to Dr Raghu Rajan’s case as well.

He like India’s PM says the recent Congress victory in Karnataka shows resurrection of the party:

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