Posted by: Deepa Vasudevan and Uma Sha... on Tue, Feb 18th, 2014

Fiscal Deficit- How the Red Line was Honoured...

The fiscal deficit for 2013-14 was restricted to 4.6% of GDP, well within the promised "Red Line". This blog analyses how the government managed to achieve its target despite falling economic growt

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Posted by: Deepa Vasudevan on Sat, Jan 25th, 2014

A New Year. A New Monetary Policy Framework?...

The Patel Committee has recommended far-reaching reforms to monetary policy. The key idea in the report is that RBI should move to targeting CPI-based inflation and it

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Posted by: Deepa Vasudevan on Thu, Dec 12th, 2013

A More Stable External Account...

The RBI's strategy of compressing imports and attracting NRI funds through the FCNR(B) scheme has greatly eased the BoP situation. If FII inflows also pick up in the re

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Posted by: Deepa Vasudevan on Tue, Nov 19th, 2013

CPI and WPI: Tough to choose one over the other...

The new CPI index captures retail prices changes better than WPI. The two indices occasionally diverge, but since producers eventually pass on price hikes to consumers,

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Posted by: Deepa Vasudevan on Mon, Oct 21st, 2013

Economic Slowdown and Corporate Profitability...

The private corporate sector has been hit by declining margins and high interest costs over the last four years. A recent RBI study shows that small and medium sized co

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Posted by: Deepa Vasudevan on Mon, Sep 23rd, 2013

Why did RBI increase the Repo Rate?...

The RBI increased the repo rate by 25 basis points and simultaneously eased liquidity at the short end in its September monetary policy. The purpose was to swiftly supp

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Posted by: Deepa Vasudevan & Uma Shash... on Wed, Aug 28th, 2013

A Timeline of the Rupee's Slide...

The Rupee-Dollar rate continues to decline. Measures to manage its slide have not succeeded in reversing the depreciation. A time line depicting the slide and the event

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Posted by: Deepa Vasudevan on Wed, Aug 7th, 2013

Tracking Every Dollar...

India is expected to face a current account deficit of $85 billion this year. Capital inflows and import compression are likely to finance only a part of it. A deficit

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Posted by: Deepa Vasudevan on Thu, Aug 1st, 2013

India's Impossible Trinity...

India's high current account deficit and vulnerability to reversal of foreign inflows have pushed down the rupee dollar exchange rate. In its efforts to maintain the value of the rupee and ensure c

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Posted by: Amit Trivedi and Uma Shashi... on Fri, Jul 19th, 2013

Carnage in Liquid Funds Explained...

The RBI's measures to halt rupee depreciation led to a steep rise in short term market rates. NAVs of liquid funds fell sharply. This was a shock as it is generally pre

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