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Debt gains
The Korean debt deal has enthused the Seoul stockmarket while it has breathed new life into the won. The financing terms for $24 billion of South Korea's $30 billion short-term loans are also better than expected. The deal should end the country's liquidity crisis, and the economy's inherent strengths can now work again to re-establish its international credibility.
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Accelerating FDI
Foreign direct investment in India is accelerating. The annual inflow doubled to $2.6 billion in 1996-97 over 1994-95. This was not considered good enough. The doubling was over a very small base. Nor was the absolute amount of investment significant. But things seem to be changing.
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Does gold have a future?
With as important a personality as Alan Greenspan of Federal Reserve, USA on the side of gold for the sake of financial discipline and advocating even the linking of dollar value to gold the future of gold cannot be as bleak and sombre as it is being portrayed by some of the new zealots of the currency supremacy in their latest utterances.
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Indonesia needs more than a bailout
Indonesia may have agreed to a dose of harsh economic medicine from the International Monetary Fund, but it will take more than the IMF's prescriptions to cure the country's woes. Distortions in Indonesia's economy cannot be addressed in isolation from distortions in its political and institutional life.
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