The system envisaged under the FRDI Bill, if implemented properly, would help improve the efficiency of capital allocation without harming consumers, and without risking the stability of financial firms, says Ajay Shah.
Without bringing sound governance and technical capabilities into the RBI's work, injecting new money sets the stage for a next wave of bad behaviour by banks, warns Ajay Shah.
'The hour is very late, and the choice between triumph and tragedy knocks at our door,' says Ajay Shah.
A way out of the economic slump is to revisit the template of 15 years ago and follow its constituents, recommends Ajay Shah.
To the extent that body shopping is replaced by true offshoring, everyone is better off, says Ajay Shah.
'The quick fixes have failed; there is now no alternative to deeper reforms,' says Ajay Shah.
'Concerns about India's future are hampering private investment.' 'If the private sector sees strategy, teams and execution on these issues, this will inspire confidence in India.' 'This should be our main strategy for 2017,' says Ajay Shah.
The size of the hole in today's banking crisis appears to be roughly 10 per cent of GDP.
There is ample fuel in the computer revolution to do many useful things.
India's economy is not like Western ones, and thus needs restrained fiscal policy even during a recession, says Ajay Shah.
What is required from government is intellectual framework.
The non-oil, non-finance sector of the economy is under severe stress.
We are in this mess as the machinery of the government in a market economy is broken. We need technically sound banking regulation, so that capital is not misallocated, and the landscape does not get littered with zombie firms kept alive through evergreening, says Ajay Shah.
While price volatility is not inherently bad, commodity futures markets and hedge funds operating on these markets will help reduce price volatility. While price volatility is not inherently bad, commodity futures markets and hedge funds operating on these markets will help reduce price volatility.
The central bank should be made responsible for delivering on an inflation target.
The long-term answer lies in getting the central bank to focus on inflation.
The US economy is facing substantial difficulties. Housing prices have dropped. An increasing number of households are defaulting on home loans. Losses on home loan portfolios are affecting financial firms who hold derivatives on home loans. Some financial firms have gone bankrupt, and there is uncertainty about who else might be bankrupt. With finance in difficulties, the monetary transmission is malfunctioning.
Nifty and Nifty Junior companies show gains (on average) when the rupee appreciates.