We are in a better position globally because the macroeconomic situation is much stable, economies are picking up speed after the last year, says TV Narendran, President, CII during an interview with ET Now. Edited excerpts: Do you think the second COVID wave brought us a challenging time? Yes, it is a challenging time and … Read more
US 10-year Treasury yields could rise to 2.15% by year-end, BofA said on Friday, in a target it said was above consensus. BofA revised up its target citing a “much more aggressive” US fiscal stimulus impulse and rapid vaccinations in the United States. The bank also revised up its target for German 10-year Bund yields, … Read more
Instead, should countercyclical fiscal policy become part of our policy lexicon to be used judiciously, but unapologetically? The clamour for fiscal stimulus is, incidentally, not a product of the Covid pandemic. Synopsis Thus, it might be prudent to go the extra mile to consolidate debt when the economy is booming. A way to formalise this … Read more
India has proved more resilient than one dared hope. Synopsis Other countries have been hit by a second Covid surge and accompanying curbs on economic activity. But not India. All short-term indicators from October onward — electricity consumption, rail freight, auto sales, goods and services tax (GST) receipts — keep rising. If this trend continues … Read more
The Rs 73,000 crore to ‘stimulate’ consumer spending announced on Monday is even more unfortunate. Synopsis Instead, it has played it safe by accepting RBI’s decisions to address the stress caused by the pandemic, in the hope that it will find favour with the Supreme Court. RBI’s recent Covid-19 resolution framework (RF) allows for one-time … Read more
When talking about fiscal stimulus, economists love to talk about 3 Ts — timely, targeted and temporary. What they mean is that a stimulus should be timed to get maximum bang for buck, should target people who will spend quickly and activities that will get off the ground quickly, and should be withdrawn when the … Read more