Tag: ft

The problem with rating agency and IMF calls for governments to tighten fiscal policy is that monetary policy cannot offset it under current circumstances. We have reached the zero lower bound for interest rates in Japan, the US and UK while quantitative easing in its current form has disappointed.
I would feel relaxed about fiscal tightening if interest rates were 10 per cent or more and central banks could cut them as inflation dropped. But I am not convinced monetary policy can take up the strain if we are seeing fiscal retrenchment at the same time. An expansion of both fiscal and monetary policy offers the best hope for the future.

Source.

FT Alphaville » Keep calm and carry on.

The truth is that India is in no position to become a superpower. It is not a rising power, nor even an emerging power. It is merely a fascinating, complex, and perhaps unique experiment in nationhood and democracy, whose leaders need still to attend to the fault lines within, rather than presume to take on the world without.

via India is too corrupt to become a superpower – FT.com.

Bullion, seen as a haven in times of economic turmoil, rallied to a peak of $1,600.40 a troy ounce on Monday morning.
Silver also jumped on Monday morning, rising above $40 a troy ounce for the first time since its collapse in early May.

Debt fears drive gold to $1,600 – FT.com.

The amount of money raised through initial public offerings in India has fallen by more than 80 per cent year on year. In the past six months there have been 22 listings in India, raising a combined $780m – down on the same period last year when just over $4bn was raised in India through 28 IPOs. This could be because of heightened PE activity, with players looking to preempt companies from going public.

Read more about IPO performance here.

Source: Appetite for Indian IPOs wanes – FT.com.