Archive for June 28th, 2016

Rising tomato price raises demand for tomato puree and ketchup..

June 28, 2016

People reacting to price signals with most hardly heaving studied economics.

AS tomato prices zoomed people used complements like puree and ketchup as these will factor in prices with a lag. They also used substitutes approach and started buying veggies which do not use much of tomatoes:

Demand for puree and has shot up by 40 per cent within one month as people have curtailed the use of tomato and prefer dishes which do not require much use of tomatoes, like lady finger or pumpkin etc, according to latest survey done by Assocham.

According to survey, the local grocers have also increased stock of tomato puree/ketchup. The local grocer said, in the last two weeks there has been a rise in sales of products such as puree, ketchup as one spends less on buying puree/ ketchup than a kilo of fresh tomatoes.
 
A rise in the price of tomatoes has affected the budgets of families in the city. As per the recent survey, about 78 percent of households find difficult to manage their household budget and squeezing families’ finances to the lowest level due to sudden rise in price of tomatoes, pulses. The maximum impact was felt in Delhi-NCR followed Mumbai, Ahmedabad.

Nice bit of seeing micro work in real life…
 

PV Narasmiha Rao’s successful economic legacy and troubled political one..

June 28, 2016

We are just a few days away from the momentous month of July-1991, a huge year in India’s economic history. Here is P.Chidambaram’s account  who saw things ticking being right there. What is really interesting how all this was done so quietly.

The 25 years that have rolled by have changed the face of India and the fortunes of millions of people who have been lifted out of poverty. I was lucky to have had a part in the various Acts of the drama that continues to play even today — the script was more or less the same, only the key actors changed from time to time.

The other difference — actually the BIG difference — is that while dramatic changes were being made to the economic policy, the government maintained a low profile and avoided any drama or hype. There were no choreographed ‘events’; even full-page advertisements were avoided. The first major exposition of the new policies was on July 4, at a seminar in Delhi. In September, Dr Manmohan Singh and I traveled to Singapore to address an India-specific conference that attracted investors and bankers from around the world.

Now it is just the opposite. All simple things are clubbed as reforms and game changers amidst huge show of pomp and plendour.

What is also interesting is that all these changes came when they were least expected.

Vinay Sitapati’s really timely book on the former PM PV Narasimha Rao will further ignite debates and conspiracy theories. In this account, Sitapati narrates how PVN took the economic agenda forward:

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Iceland wins the football fight as well…

June 28, 2016

Despite least probabilities of Iceland winning you know with England there is always a chance. Their record in these football cup events is so poor that perhaps only South Africa competes with them for the top abysmal spot in cricket.

What a match. Take a bow Iceland!!

 

Do the Experts Know Anything?

June 28, 2016

Justin Fox wonders why we value experts’ views so much given how wrong they have been all this while. The focus obviously is on economic experts:

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Brexit is the end of Fukuyama’s end of history??

June 28, 2016

Matt O Brien has a piece in WaPo.

He says Brexit changes the view of Fukuyama significantly:

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