Archive for September 22nd, 2016

Why is Indian Finance Ministry worried over low ratings of credit rating agencies?

September 22, 2016

Such news developments are actually laughable.

It is one thing for “leading global rating agencies” to say India not doing enough so ratings not being revised upwards. It is completely another to see Finance Ministry officials of all people to be worried over the country ratings not being revised.

All these ratings have been thoroughly exposed in the ongoing crisis. Whatever they rated as AAA has come kaput and what they rated as BBB and lower etc is hardly as bad. So for all you know, by not revising the India ratings, the economy might be  doing well.

These agencies prism of country doing well is around such narrower domains – low inflation, low fiscal/current account deficit, disinvestment, privatization etc. They can never really appreciate anything more than these 3-4 variables. And ironically, India is doing well on all these 3-4 variables!!

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Bank of Japan to control the Japanese yield curve!!

September 22, 2016

One is completely fed up of the tactics being deployed by central bankers worldwide to keep controlling and planning the financial economy. I did read news of yield curve control by Bank of Japan here and there in the morning, But somehow thought it must be some rumor or one of those crazy suggestions to keep hings going.

But it is true. Bank of Japan indeed is going to control the yield curve!:

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Singapore as a model for economic transformation – case of state planning or markets?

September 22, 2016

Recently Govt of India invited Singapore PM Tharman Shanmugaratnam for the inaugaral Niti Aayog’s transformation lecture. As expected, much of discussion which followed was around we could use Singapore’s market driven model to drive economic growth.

Prof. Pulapre Balakrishnan disagrees with the narrative.  He says it is Singapore’s history of development is as close to socialistic planning as it can get. This is even more ironic as the lecture was held at Niti Aayog which recently replaced Planning Commission:

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Why the father of modern statistics (Ronald Fisher) didn’t believe smoking caused cancer…

September 22, 2016

Ben Christopher has a superb piece on history of statistics and the age old debate in statistics – does smoking cause cancer?

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