tag:blogger.com,1999:blog-4740849900073154554.post6479954388896715926..comments2023-08-25T17:30:36.937+05:30Comments on Business Musings: Don't cry for me ArgentinaRameshhttp://www.blogger.com/profile/11782192840421019943noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-4740849900073154554.post-87380728264911004332010-01-14T19:49:39.755+05:302010-01-14T19:49:39.755+05:30@VA - Completely agreee. There must be minimum qua...@VA - Completely agreee. There must be minimum qualifications for a MP (and not number of murders committed !)Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-85441576542218655422010-01-14T04:48:40.347+05:302010-01-14T04:48:40.347+05:30Yes, something which is totally wrong and disheart...Yes, something which is totally wrong and disheartening... Have been wondering on this particular stuff since my school days when I studied social sciences. Why there can't be some minimum criterias for filing nomination of parliament elections?VAnoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-69104591740397014532010-01-14T03:56:40.673+05:302010-01-14T03:56:40.673+05:30@VA - Its rather strange that being a minister, wh...@VA - Its rather strange that being a minister, which is one of the most demanding jobs in the world, requires no qualifications. People make a virtue of their ignorance and claim to be a "common man" to get elected. Something very wrong, isn't it ?<br /><br />@Deepa - Yes RBI governors have traditionally been men of very high stature and so have been Finance Ministers. But we have had disasters like Charan Singh. Before the liberalisation in the early 90s, we have had many poor Finance Ministers. And some very awful Babus. Quite a few political decisions even now (eg repeated loan write offs) have been disastrous ones, which an independent RBI would at least have refused to finance.<br /><br />@J - You cannot have complete independence of course. But having set a series of monetary policy objectives (eg curbing inflation) in its charter the Central Bank should be left alone, I believe. Independence does not necessarily mean conflict. Governments and the Central Bank can certainly coordinate economic policy, but the governments want to do stupid thinks, the RBI must have the abiklity to tell them to go get stuffed. I know the Fed's behaviour on interest rates during the Greenspan era has led to some controversy, but it is far better to have that than what China is doing today.Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-74238201125884829182010-01-12T22:30:06.048+05:302010-01-12T22:30:06.048+05:30Central bank independence is a very interesting is...Central bank independence is a very interesting issue and it has to be in shades of gray. Can you truly have independence? Should politicians have no say on monetary policy while they are expected to drive economic policy? When it comes to the caliber of Indian politicians today, I have no hesitation that the more they stay out of everything, the better we are. But assuming we had capable politicians, to what extent should the central bank be independent? I think an independent Central Bank serves the role of checks and balances on the government. But in practice it is all murky. There is an outcry in the US against Ben Bernanke of the Fed and some want the government to audit the Fed. While I dont endorse the government audit, is the Fed above criticism because it is run by a group of smart economists without direct political ambitions. Sorry for rambling...this is interesting stuff but so complicated.Jnoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-90347234375907693922010-01-12T21:59:05.450+05:302010-01-12T21:59:05.450+05:30I googled 'Bundesbank'. :) And I can see y...I googled 'Bundesbank'. :) And I can see your point now. I went through the profiles of many RBI Directors (starting from the latest ones), they are a very highly qualified and knowledgable lot. They have controlled the valve efficiently so far, but like you said, it definitely is in tandem with what the current government's fiscal policy is. <br /><br />On Sandhya's point- I feel, all Indian govts so far have been very careful about two portfolios, Finance and Foreign Affairs. And I feel that has been much deliberately done. You can't get away with goof ups in these two places. But yes, we had one Mr. Deve Gowda as PM once upon a time. And fortifying RBI against a calamity like that in the FM does make sense.Deepahttps://www.blogger.com/profile/16149267172223745802noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-38850496391356573312010-01-12T16:40:24.376+05:302010-01-12T16:40:24.376+05:30whether by proper planning, or by sheer luck all f...whether by proper planning, or by sheer luck all finance minsters this country has had have been people who knew economics beyond its spelling.<br /><br />to that extent, the interventions have if only helped. But agree with you, this will only help in a long term perspective to keep it out of these netas and babusSandhya Sriramhttp://sandhyasriram.sulekha.comnoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-68572102001637975122010-01-12T10:13:16.341+05:302010-01-12T10:13:16.341+05:30I just kind of love it when you talk of our netas ...I just kind of love it when you talk of our netas and babus. It is really shameful for our democracy to have such ignorant flock of people sitting in the parliament. But as you say "we deserve what we elect"<br /><br />Even if our MPs do know abc of economics, it would still be bettew to make RBI independent for sense of responsibility is not so common after all.VAnoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-10616441668862450222010-01-12T03:54:26.226+05:302010-01-12T03:54:26.226+05:30@kiwi - Gils is perfectly expressive, isn't he...@kiwi - Gils is perfectly expressive, isn't he ?<br /><br />@mahesh - Not surprised at your example at all. Its OK with the common man, but if cabinet or parliament were stocked with such worthies then the only way is to stop them from having the powers to screw up the finances.<br /><br />@Deepa - Yes, I mean like the judiciary. Monetary policy is too dangerous to be played around with. To me the old Bundesbank model in Germany was the perfect example. The Bundesbank listened to nobody and single mindedly guarded against inflation. That's why its so much respected even today long fater it was overtaken by the Euro.Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-71287744675251067172010-01-11T22:49:35.753+05:302010-01-11T22:49:35.753+05:30I still do have an optimistic faith when it comes ...I still do have an optimistic faith when it comes to RBI in India. Haven't really heard of RBI Governors playing stooges to the government so far; but maybe I am plain ignorant on this. On the other hand, yes, country's economy placed in irresponsible hands is a scary thought. <br /><br />But when you say 'independant RBI', do you mean as independant as the judiciary function? Wouldn't that be a bit too liberal too?Deepahttps://www.blogger.com/profile/16149267172223745802noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-14527502002654417072010-01-11T21:56:09.016+05:302010-01-11T21:56:09.016+05:30Bang on the head of the nail. I like how you put i...Bang on the head of the nail. I like how you put it that 2/3rd of our politicians cant spell economics right... :)<br /><br />I am currently reading a book called Ascent of Money which says that the cause of this financial doom and gloom can also be attributed to poor financial knowledge of people. for e.g. in 2006 British Financial Services Authority carried out a review of financial literacy to find out that: 1 in 10 people dong know which was better discount on a television worth £ 250 - 10% or £ 30. <br />I am sure some of these above are also making policies... unfortunately this impacts every one in their country and with globalisation every one in the world...Unknownhttps://www.blogger.com/profile/14878492503680554454noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-32809068337598124212010-01-11T21:37:52.548+05:302010-01-11T21:37:52.548+05:30"If you ask two thirds to spell economics&quo..."If you ask two thirds to spell economics" loved it! Matter of fact if you ask two thirds to spell (any thing for that matter), they would have failed. We live in a country of pathetic standards where an ex prime minister calls a current chief minister B@5#@^d in a public meeting. If I were to use Gils' language: Thalaiezhuthu!kiwiblokenoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-43573766902186828202010-01-11T19:28:16.317+05:302010-01-11T19:28:16.317+05:30@Dave - Thanks Dave
@gils - you are too much. The...@Dave - Thanks Dave<br /><br />@gils - you are too much. The gems you come up with .... Thanks for the kind words.<br /><br />@Sri - Very true for credit card borrowers as well. You give me too much credit.Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-56533353643570778322010-01-11T12:38:59.236+05:302010-01-11T12:38:59.236+05:30Thats so well said, u cannot spend what u dont hav...Thats so well said, u cannot spend what u dont have. It goes for all those credit card spenders I know too.. <br /><br />I wish u would be in power to make such decisions to save the country from illitrate hands. I really wish!srihttps://www.blogger.com/profile/05163300976131007175noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-50426892937596510982010-01-11T09:28:17.950+05:302010-01-11T09:28:17.950+05:30one nimit..naan football pathina postu..maradonang...one nimit..naan football pathina postu..maradonangara worday kaanumaynu theditrunthen!! :) intha blogku indigoite ku badila..know ur eco nu title vachirukalam :) semma brainy postsgilshttps://www.blogger.com/profile/03259194565523548553noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-61976863207486370372010-01-11T09:01:41.811+05:302010-01-11T09:01:41.811+05:30one of the unique pieces. Love it!one of the unique pieces. Love it!Half Indianhttps://www.blogger.com/profile/08038909033198692841noreply@blogger.com