Debt no option
The Reserve Bank has decided to let the states raise a certain proportion of the market borrowings they are allowed at market related interest rates. This flexibility will allow the states to offer lower coupon rates in consonance with the decline in these rates for central loans. This is a desirable reform, but its impact on the rising interest burden of the states will be marginal.
Definite dampener
The Reserve Bank of India has been successful in its endeavour to stem the panic on the rupee front, but the `fundamentals' now no longer seem so sound as they are made out to be. December's export performance has been lacklustre, with exports dropping by 5.5 per cent compared to December 1996.
Asset-liability management in banks
Ever since the the initiation of the process of deregulation of the Indian banking system and gradual freeing of interest rates to market forces, and consequent injection of a dose of competition among the banks, introduction of asset-liability management (ALM) in the public sector banks (PSBs) has been suggested by several experts. But, initiatives in this respect on the part of most bank managements have been absent.
Demand lag stumps economy
This is the concluding part of the article titled `Will Reserve Bank's prescription work?' The author spoke about how the RBI was taking steps to prevent the Asian contagion from touching the shores of the subcontinent. He also touched upon the process of liberalisation and compared it with the other emerging market economies.
The States reigns supreme, for now
Although it emerged after the collapse of communism as the world's only superpower, the United States has been widely viewed as a nation in relative decline. The ongoing economic crisis in East Asia drastically alters that perception. Clearly the dominant military power, the US is increasing its lead over rivals because of its technological prowess. More important in the post-Cold War era is its economic preponderance.
Election fervour yet to catch on, thanks to EC
The election fever of yesteryears is missing in Delhi, thanks to the prying eyes of the Election Commission which is monitoring the election expenses of candidates through a battery of government officials. The fear of overspending charges seems to loom large over individual candidates and political parties leading to canvassing without any fanfare.
