Financial Deregulation in USA

Financial deregulation can refer to a variety of changes in the law which allow financial institutions more freedom in how they compete. Whether such changes are beneficial or harmful to the economy as a whole has been widely debated.There has often been struggle in past between proponents of regulation and proponents of no government regulation. If…

TRUMPIAN REAGANOMICS

In the past few years, the world has witnessed potent wave of protectionism rising in free market economies. The election win of Donald Trump displays the rage and dismay of white middle-class Americans whose wages had remained stagnant due to influx of immigrants. Trump’s administration is expected to come out with “America First” policies for…

Should China Go For Full Capital Account Convertibility?

Capital controls have essentially been the trait of all developing economies craving to defend their foreign exchange reserves against volatile capital flight. Policymakers worldwide are convinced that all nations should have their current account fully convertible but the same consensus have not been reached for capital account. Mavens have cited convertible current account as promotion…

SOARING WEALTH GAP

The global welfare economics has got exacerbated due to rising income inequalities. Gini coefficient which is a globally accepted index for measuring income distribution highlights the plutocracy and nepotism existing worldwide especially in developing and underdeveloped economies. A January 2014 report by Oxfam claims that the 85 wealthiest individuals in the world have a combined wealth equal…

THE CURSE OF UNCONVENTIONAL POLICIES ON EMERGING MARKETS

Since the early 2000,Unconventional Monetary Policies (UMP) have been the major element of toolkit being used by the central bankers of advanced economies to counteract Deflation and Liquidity Traps.Such policies are used when conventional expansionary monetary policies fails to lower down short term interest rate to the extent of zero as people hoard cash in…

EURO:PERILOUS PROPOSITION

  In early 1990, the idea of having single currency was much talked about by policymakers  in Europe irrespective of economic and cultural differences. Policymakers do realized that there were perils associated with having Optimum Currency Area (OCA) but untill 2008 merits appeared to outweigh demerits. In 1999 what appeared to be theory or abstract…