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looking beyond borders

foreign policy and global economy

Archive for the tag “rupee”

Pakistan’s Perpetual Crisis

Like much else about Pakistan, it’s often infuriatingly difficult to determine whether or not its economy is on the brink of disaster. This week, as the Pakistani rupee lost 5 percent of its value in just three days, it looked like trouble was brewing. And sure, this might be a sign of the economy slipping towards a balance-of-payments crisis. But, then again, it might not. Pakistan doesn’t just live on the edge, it seems altogether nonchalant about being there.

Read Here – BloombergView

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India’s Proverbial Frog In The Pot

Banking reforms alone, however, aren’t going to bring foreign investors back or prevent the rupee from falling further. This is (Raghuram)  Rajan’s real challenge: He is stepping into a stew of financial chaos, missed opportunities and political paralysis that has been simmering for years. It’s no longer inconceivable that India could become the first of the BRIC economies — BrazilRussia, India and China — to lose its investment-grade rating. And Rajan may not be able to do anything about it.

Read Here – Bloomberg

Th Elephant Needs To Dance Bold Steps

Not so long ago India was celebrated as an economic miracle. In 2008 Manmohan Singh, the prime minister, said growth of 8-9% was India’s new cruising speed. He even predicted the end of the “chronic poverty, ignorance and disease, which has been the fate of millions of our countrymen for centuries”. Today he admits the outlook is difficult.

Read Here – The Economist

…And Whatever Happened To Emerging Markets?

When the U.S. financial system crashed in 2008, market watchers were increasingly romancing the idea of a “decoupling” that would separate emerging-market fortunes from those of the subprime-hobbled U.S. Such economies as Brazil’s and China’s, the thinking went, had the demographics and national balance sheets to keep growing and wowing as America foundered. Never happened.

Read Here – Businessweek

India’s Credibility Crisis

As on a battlefield, so in the marketplace — a war to defend the economy is not won by the deployment of superior armoury but by the cleverness and credibility of one’s strategy and tactics. In a crisis, economic policymakers are like generals in war time. Their reputation is won not by the superiority of the firepower at their disposal, but by their display of wisdom and cunning and, above all, their credibility among their own troops, and not just the enemy.

Read Here – Indian Express

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