Cobra Effect

The season is of people putting up there views on Demonetization and GST, a lot of gas is being release. A lot of froth. Hopefully it should crystallize soon, though very unlikely from the look of it.

Sanjay Bakshi(in ET) of MDI has put an article about Cobra Effect:

There is this funny story about the “Cobra Effect” based on an anecdote from British colonial time in Delhi.

Apparently, the officials of the British government were terrified by a l Continue reading


A brief history of why most Indian women’s clothes don’t have pockets (and rise of handbags)..

Mostly Economics

A fascinating short piece and video on Scroll.

The difference between men and women in terms of consumption and sartorial patterns is always puzzling. The marketing industry thrives on this very idea of trying to differentiate as many items between men and women. From starting obvious things like clothes now we have cornflakes, milk drinks etc which are sold seperately for women.

Within clothes, one puzzle always is why women clothes do not have pockets?

The lack of pockets in women’s clothing has been a universal concern for decades.

“Women have from time to time carried bags, sometimes sewn in, sometimes tied on, sometimes brandished in the hand, but a bag is not a pocket,” wrote Charlotte P Gilman for The New York Times in 1905. “One supremacy there is in men’s clothing… its adaptation to pockets.”

Gilmann was writing at a time when pockets were stitched on to women’s clothing in…

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Are the Bankers new scapegoats.

Generally the incoming government is quick to put its own people in places of power it starts with IAS and goes down to Governers and VC of varasities. But it seems this time it has gone to a new level. The government seems to be scapegoating bankers for the loans they granted to Kingfisher. Former chairman of IDBI and other top officials were arrested recently. Bankers in mumbai definately feels it is vendetta politics. Swaminathan writes in ET a piece on it. He exhorts the government to be pragmatic and set up a bad bank. That possibly the solution to this mess.


Trump disregarding new normal

While it is sad to believe who can not grow forever, atleast in terms of economics, but it is hard reality. Ruchir Sharma offer his two-cents. His contention is that, at the time of Reagan productivity and population growth was both 1.75%, hence US could grow at 3.5%. With population growth declining and productivity at just .75% its hard to achieve purported 3-4% growth. This is the new normal and we all have to adjust to it.


How Modi govt lobbied Moody’s for ratings upgrade, but failed

Rating Agencies are major stake holder in international finance. No wonder they were identified as the prime culprit when global finance ran wild. The hallow institutions were tarnished. But not enough, I guess. Recent effort by Indian government to lobby one of the three  major rating agency.

Though it is highly unbecoming of Indian Govt to indulge in this, I guess the practice is quite widespread.

UPA real growth Story

Rajiv Gowda, a professor at IIMB, and a Congress Rajya Sabha articulates in The Hindu, what is the real story behind the growth in UPA.

The story started when previous PM Dr Manmohan Singh, penned a article in The Hindu expressing his concerns on demonetization. S. Gurumurthy, RSS ideologue, published a rejoinder to same, that it was growth of now demonetized money which fuelled the growth. This also fuelled corruption and black money, he argues.

  • In the present of article Prof. Gowda argues:
  • Growth was real
  • The growth in asset price and gold and stock market was in line with norms.

All the three articles are very nice reads.