Archive for July 28th, 2015

Debt miracle: Why the country that borrowed the most industrialised first

July 28, 2015

Jaume Ventura and Hans-Joachim Voth say that it was the debt revolution in Britain which played a strong factor in its industrial revolution as well:

Noise over Indian central bank’s Monetary Policy Committee

July 28, 2015

One keeps wondering why is there so much noise over trivial things and nothing at all about things that actually matter. On inflation front, instead of debating about fundamental questions like whether we should have MRP (Maximum retail price), we worry over really trivial things like constitution of MPC and whether the chair of the central bank will have veto power or not.  That too seeing what little impact all this has over monetary policy. Whether the chairperson has veto power or not, his/her view usually sails through. There are hardly any cases where we have seen the chair;s views voted out by the committee.

Before, we get into the issue further, what is this whole issue about? In 2011 Budget, Indian givt set up something called Financial Sector Legislative Reforms Commission, The idea was to review and rewrite all the laws/frameworks pertaining to Indian financial sector. The idea was to modernise India’s moribund financial sector and make it jazzy like the western financial world. It was a huge effort and the committee put up the report in March 2013. Comments were sought from the public which again took about two years (why this long?). All who’s who of Indian finance (in India and abroad) were part of this process. Though, on becoming policymakers views of the same advisers changed over the report.

Now, the govt has put up a revised document after incorporating suggestions on the report. One keeps wondering who would have commented on the report? Finance and Financial laws is as elite as it can get. One seriously doubts public has any idea on what is going on. All such hifi finance is by the elite, for the elite and of the elite. But anyways, the process is much better than closed door writing and implementing of such laws.

The govt notice says:


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