-The Telegraph Investors may be buying stocks again, but fundamental drivers such as expected corporate performance remain unchanged Sentiments matter for economic growth. Optimistic or upbeat sentiments encourage consumers to buy and borrow; businesses, on the other hand, are spurred to plan and invest. But when in reverse gear, downbeat or negative sentiments can hold back spending, restricting activities and stifling growth. For an economy seeking to revive itself, be it India...
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Professor Amiya Bagchi, Marxist economist, interviewed by Subhoranjan Dasgupta (The Telegraph)
-The Telegraph "The government has miserably failed to stimulate the domestic economy. It has spent less and less on public education, healthcare and infrastrucTure because of its erroneous policy" The Modi government has an ambitious plan to create a $5-trillion economy in the next five years — but all data points are heavily stacked against it. The economy is floundering and the Reserve Bank of India has already trimmed its growth forecast...
More »RBI's bonanza: Fiscal deficit by another name -Aunindyo Chakravarty
-Newsclick.in It’s just a parlour trick to disguise financing of government spending that does not appear in the formal Budget. We all know by now, that economic activity in this country has come to a grinding halt. That’s not just bad for our earnings, but also for the Government of India (GoI). Because, when people don’t buy or sell things, or even produce them, the government doesn’t get enough taxes. So, economists...
More »In economic slowdown, a back story about falling investor confidence -Harish Damodaran
-The Indian Express Fixing the economy today cannot happen through consumption; revival in investment is what's desperately needed. New Delhi: Investment, unlike consumption, satisfies no immediate want. The businessman putting his money today is basically taking a bet on the fuTure, when it would start yielding reTurns. Such bets are a function of the “state of confidence” at the time of investment. The investor has to be reasonably, if not absolutely,...
More »The business of politics, the necessity of values -Mukulika Banerjee
-The Indian Express Elections are short term contests, but the political project of democracy is a long game. Democracy is not just a set of institutions but also a set of values. The institutions are, minimally speaking, free and fair elections, an elected Parliament containing an executive and an Opposition to hold it accountable, an independent judiciary, a nonpartisan bureaucracy, a free media, and security of existence for all citizens. Democratic values...
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