Prologue What is Fed tapering Why is it called Fed Tapering? How can Fed Tapering affect India? Worst case scenario [WCS] by Fed Tapering WCS1: Hot money gone / Flight of Capital WCS2: Weaker Rupee= bigger CAD + bigger [...]
Prologue Desi Vaccine against Fed Tapering? Volatility in Forex market: Why should Rajan intervene? [More onions 1] BRICS bank [More onions 2] Currency Swap agreement with Japan [More onions 3] Dollar swap for Oil companies [More onions 4] FCNR [...]
Prologue Characters in QE movie [Act I] Subprime crisis: toxic assets (2007) [Act II] Quantitative Easing (2008) Why can’t LOW repo rate solve problem? Quantitative Easing: "Electronic" Money OUT OF THIN AIR Concept#1: QE = NOT OMO Concept #2: [...]
Prologue A: The Three Funds Fund #1: Nirbhaya Fund Fund #2: Innovation @Grassroot Fund #3: Venture Capital fund for SC Entrepreneurs B: Three Schemes HRD#1: Central Scheme for Interest Subsidy CSIS HRD#2: NSDC certificate HRD#3: UDAAN One Rank one [...]
Subsidies PDMA: Public Debt Management Agency in Interim budget FRBM: States succeed where Union fails Structural deficit & Cyclic deficit Subsidies Back in the mid-90s, P.Chidambaram himself classified Subsidies in three types #Type 1: Public Goods Services given to [...]
Prologue Budget: Capital part: incoming (receipts) [Table] Capital receipt #EPICFAIL in disinvestment Capital Expenditure Plan vs Non Plan Plan vs Nonplan budget: Incoming (Receipt) part Plan vs Nonplan budget: Outgoing (Expenditure) part [Table] Plan vs Non plan Expenditure in [...]
Prologue Raju Guide (DevAnand)’s budget Revenue incoming Non Tax Revenue Revenue Outgoing Raju Guide’s Capital Budget Capital incoming (receipt) Capital Outgoing (Expenditure) Govt.’s Annual financial statement Non-Tax Revenue receipts of Government [Table] NON-TAX REVENUE sources (Descending order) Revenue Expenditure [...]
Parts of Budget #1: Direct Taxes Direct taxes under Interim Budget 2014 Income Tax Shortfall in Direct tax collection = #EPICFAIL But Why shortfall in Direct tax collection? #2: Indirect taxes Indirect Taxes in Interim Budget 2014 #I1: Service [...]
Why Government Budget? #1: Contingency fund of India (Art.267) #2: Public Accounts of India (Art.266) #3: Consolidated fund of India (Art.266) What is Vote on Account? What’s interim budget? Vote on Account vs Interim budget Interim budgets in the [...]
Prologue #2: @RBI fix accountability in monetary policy making Monetary Policy Committee MPC Decision by Majority MPC: Accountability for #EPICFails MPC: Summary #3: @Government give Cover fire to RBI #: MNREGA: #: MSP #: Fiscal Deficit #: Loan Waiver [...]
Prologue Monetary Policy reform: Where to focus? #1: Focus on Exchange rate #2: Focus on Multiple indicators #3: focus on inflation Nominal anchor (CPI) method: Benefits/Advantages of Nominal anchor (CPI) method: Drawbacks/Limitations/Anti-arguments Why Target inflation? Nominal vs Real interest [...]
Prologue What is monetary policy? Quantitative Tools #1: Reserve Ratios (SLR and CRR) #2: Open Market Operation (OMO) #3: Policy Rate Bank Rate Liquidity Adjustment facility (LAF) LAF Repo Rate Marginal Standing facility (MSF) Reverse repo Rate Repo Rate [...]
Prologue Bancassurance #1: Referral Model #2: Corporate Agent model #3: Broker Model Benefits of Broker model? Anti-Arguments: Broker Model Nachiket on Insurance Cross KYC Reforms in NBFC bancassurance models Allow NBFCs to take deposits NBFCs as mutual funds agents [...]