The nationwide lockdown would continue in some form or the other even after May 17. This post attempts to analyze if lockdowns were effective to fight the COVID 19 pandemic. To be sure, when the Government decided to lock down on 24th March, it had no other acceptable alternative. The response was based on an …
The RBI launched Operation twist on 19th December 2019 to lower long-term interest rates in the economy. What is Operation twist by RBI? Operation twist is buying and selling of Government securities by the RBI simultaneously through Open Market Operations (OMO). Basically, the RBI sells short-term securities and uses the proceeds to buy long term …
China’s share of global manufacturing output climbed from 8.7 percent in 2004 to 28.4 percent in 2018. China is the world’s largest manufacturing hub. It is also the biggest exporter of many products like steel, chemicals, toys, rare earth, mobiles, electronics, garments, bulk drugs, etc. The coronavirus outbreak has exposed the over-dependence of the world …
Companies to move manufacturing out of China- Will India benefit? Read More »
All major economies in the world have unleashed massive fiscal stimulus packages to tackle the economic fall-out of the coronavirus outbreak. In contrast, India’s fiscal stimulus package has been minuscule. In March, the Government had announced Rs.1.2 trillion stimulus package targetted towards the poor, low-income and vulnerable segments of the population. This allocation amounted to …
Debt monetisation- Should it be done in light of the corona-induced crisis? Read More »
While the world is reeling under a coronavirus pandemic, there has been a lot of noise about China’s ‘wet markets’. Countries have appealed to China for the closure of the same. The source of COVID-19 is unclear. Though, there is some evidence that the virus originated from bats, passed on to pangolins, and then humans. …
The Great Depression of 1930 is the worst economic crisis in the history of the world, so much so that it has become the benchmark against which all recessions are compared. [You may also read- The Financial Crisis 2008 Explained] It originated in the US in 1929 and lasted until the late 1930s. It affected …
The COVID-19 pandemic and the consequent lockdown has severely impacted economic activities across the world. As per the IMF’s World Economic Outlook, the global economy is expected to contract sharply by –3 % in 2020. This makes it the worst recession since the Great Depression, and far worse than the Global Financial Crisis of 2008. [You may …
What is SDR? Why US and India opposed new SDR allocation? Read More »