RBI Governor Dr. Urjit Patel Resigns

As I opined in my previous article, the RBI governor Dr. Urjit Patel has today resigned finally after a long tussle with the Narendra Modi government. As I discussed earlier, Modi government is under intense pressure to boost the growth and employment figures in the run-up of its reelection next year. The only way in […]

The Wisdom of Étienne Bonnot, Abbé de Condillac – Part II

We saw the brilliant insight of Condillac in my last article. In the second part of his book Condillac discusses the evil effects of many different kinds of government restrictions on the free trade. He brilliantly uses the economic principles developed in the first part to prove his points. His arguments are so lucid and […]

The Wisdom of Étienne Bonnot, Abbé de Condillac

In this article I am going to review French philosopher Étienne Bonnot, Abbé de Condillac’s monumental work, Commerce and Government considered in their Mutual Relationship. Condillac originally published this book in 1776, just few months before Adam Smith’s Wealth of Nations. Today the book is published by the Liberty fund and is available in both […]

The Maternity Benefit Boondoggle

In March 2017, the Modi government amended the Maternity Benefit Act to increase paid maternity leave from 12 to 26 weeks for all women employees in establishments employing ten or more people. At that time we wrote that the end result of this scheme will be more unemployment for women employees. Instead of getting any […]

RBI vs. Government

The RBI vs. Government battle is intensifying. The Narendra Modi government intends to keep pressing demands for the country’s central bank to relax lending curbs and hand over surplus reserves, amounting to whopping 3.6 lakh crore, even if it risks provoking a resignation by the bank’s governor. After the debacle of demonetization and GST, the […]

Is “Excessive Competition” a Problem?

The Finance Minister of India Mr. Arun Jaitley at the National Conference on Public Procurement & Competition Law recently said that, We wanted multiple players because they would ensure the largest consumer interest. But there can be several other impacts. Excessive competition, at times, can result in pricing of a nature that that sector of […]

The Economics of Boom and Bust Cycle

Stock markets around the world are collapsing off late. The Indian stock market lost some 5000 points in one month time. The US stock market NASDAQ and S&P 500 erased all their 2018 gains. News headline in Reuters says the world markets are captured by the bears now. The so-called emerging market economies are slowing […]

Despotism of Democracy

Elections are the major rituals of the modern day secular religion of Democracy. Elections in four states and the grand 2019 Loksabha election, were the fate of the Modi government will be decided, are coming up again. Now round the clock people will be bombarded, by the mainstream media, with the message of how important […]

Are the Prices of Petrol and Diesel Determined by the Market Forces In India?

The Indian government has supposedly deregulated the determination of prices of petroleum products like petrol and diesel in India. Every time prices of these two products go up, the government plays this card of deregulation to answer the critiques e.g., recently the Modi government reduced the excise duty on petrol and diesel by 1.5 rupees […]

The IL&FS Insolvency: A Canary in the Coal Mine

IL&FS insolvency is rocking the Indian stock markets right now. The situation is so grim that the Modi government has now “nationalized” the company! They have bailed out a private limited company by using public money. The news is coming out that, as usual, LIC and state bank of India (SBI) are being coerced by […]