Archive for December 4th, 2014

World Bank tries to go the behavior way for development..

December 4, 2014

The change is happening gradually.

World Bank’s annual World Development Report 2015 (WDR) is based on behavioral insights..



The real question is not whether interest rates are high or low but are they correct..

December 4, 2014

 of Mises Institute says interest rates are like prices. Just like prices, we should be more concerned with right or wrong interest rates:


Why Spice Jet is facing problems?

December 4, 2014

Well there is an old joke. How to become a millionaire? By being a billionaire and then opening an airline..:-)

Anjuli Bhargava tries to make sense of the recent problems faced by Spice Jet. She looks at management related issues but in reality it is this airline sector. Somehow, it does not succeed. There are just a handful of players who have remained sane in the business.

Entry of a new airline generates enormous hype whether it is low cost or high end one. But in a few years time, things usually crash. And as most airliners have some other businesses as well (how else can one raise so much money unless you are a state), it impacts other businesses as well. The King of good times very quickly turns into king of all bad news..


How stock markets keep making a mockery of pessimist analysts..

December 4, 2014

One of the central lessons of econ-finance literature is when economy is not doing well, stock markets shall follow. The markets follow economic developments . Based on this, analysts have been predicting poor economic growth and stagnated stock markets for a while now. And what happens? Well economies remain poor but stock markets have a different story and they keep rising.

Jim O Neil of Brics fame has this piece on how emerging markets made a mockery of the pessimist analysts once again. They have risen much more than eveb what the optimists had to predict. And why just EMEs, this applies to advanced economies as well.

The books need to written again. The markets can rise irrespective of what the economic fundamentals have to say…

Indian retailers unite to stand up to e-commerce onslaught…

December 4, 2014

Just a few years ago, the same retailers gave us lessons on economics saying how competition is crucial for retail.

Now, with e-commerce retailers giving these retailers a run for money, what do they do? Allow competition? You kidding me. They oppose it and even better unite in opposition:


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