ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by D N GhoshSubscribe to D N Ghosh

Navigating the Future in the Midst of Global Uncertainty

Thanks to the central bank's relative caution on the financial sector, India is somewhat protected from the full force of the global meltdown. Yet, there is no doubt that the economy will be affected by the fallout. Policymakers need to take advance action in four areas: growth (moderating a slowdown by picking up the slack in investment), liquidity (the central bank stepping in) when needed, solvency (improving intelligence) and inflation (using quantitative controls if necessary).

Wall Street: Hoist With Its Own Petard

Before the shocks and reverberations of the subprime mortgage crisis turn into a great disaster, the present regulatory structure in the United States, especially that relating to large financial conglomerates, has to be overhauled.

Amaresh Bagchi: A Tribute

A personal tribute by a friend of over half a century to the well-known public finance economist and federalist who passed away on February 20.

Regulators: Captivated by the Market

The present global credit crisis has again shown that the supervisory and regulatory structure is out of alignment with the dynamics of the global financial market. When risks are being distributed among different financial institutions, can we live with split regulation? Will regulators continue to have no say in the regulation of rating agencies? It is time that central bankers devise a regulatory structure appropriate for the changed context; one that does not shy away from interventionist regulation.

Nuclear Debate, National Interest and Political Drama

The tone of the political debate on the Indo-US nuclear deal has been bewildering. What is worrying, as illustrated by this exchange, is that political parties are undermining the culture of dialogue and deliberation that lies at the heart of our democratic polity. Rival speakers have to listen to one another and be prepared to modify their respective positions. It is only through such dialogue and deliberation that political establishments can prove that they are capable of democratically responsible behaviour.

Aggressive Banking and Passive Regulation

Securitisation of loans has emerged as the driving force in financial markets, transforming radically the way assets in different sectors of the economy are being created and marketed, but this carries the seeds of a crisis which is what has erupted in global markets. It is time we realise that standard conservative banking principles should not be given the go-by in the name of the new fangled, exotic kind of banking. But will this ever happen?

Revisiting FDI in China

Revisiting FDI in China D N GHOSH This is a response to the comments by Matthew C J Rudolph (EPW, February 18, 2006) on my article (

Genesis of High Finance

The story of the Medici Bank of 14th and 15th century Florence is the story of how one family used finance to control a government. In the priority that the Medicis gave to financial deals can be found the seeds of the forces of global finance that today wield so much influence on the politics and economics of nation states.

FDI and Reform

It is often said that if India were to shed its inhibitions about foreign direct investment and follow in the footsteps of China, we would be in a position to realise our full potential. This misses out the true significance of the Chinese experience. China's FDI saga has been a textbook replay of what institutional economists would call "adaptive efficiency" on the part of its political regime. The country made courageous but careful choices in difficult circumstances, signalling radical departures from the belief system it had been accustomed to for decades.

There are essentially two lessons to be learnt from Maharashtra's

Corporate governance assessment is still in its infancy; it has been around only for the last three to four years. It is not and does not aim to be fool-proof in its predictive claim, as it has to rely necessarily on data as may be made available or shared voluntarily by insiders. Even though rating agencies cannot claim to have the kind of knowledge that an insider can have, CG assessment promises to emerge, if properly designed and developed, as a powerful tool not only for the investing community but also for all other groups interested in the healthy and sustained development of the capital market: financial intermediaries as well as the regulator and policy-makers. In order to widen the potential application of CG assessment and refine the methodologies in use by different agencies, extensive research will be needed to make it evolve and acceptable over time.

Danger of Hedge Funds: FII Inflows and Regulatory Helplessness

Our political establishment is taking grave risks in allowing unrestricted FII inflows without appropriate disclosure and scrutiny. We cannot afford the luxury of waiting indefinitely till good sense dawns on the US regulatory and political establishments. We should therefore take the lead for concerted action by the developing countries, for in the coming months it is the currencies of these countries and some of their major corporate players that could be the obvious targets of hedge funds. The barbarians have crossed the gate and are inside our arena. Where is our strategy to discipline them?


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