Anything but a surgical strike

January 2, 2017

A surgical strike is supposed to minimize collateral damage. But the recent "demonetisation" is a Himalayan blunder that imposes enormous punishment on the economy and society, especially the poor, not only in India, but also in nearby Nepal and Sri Lanka, and would still not achieve its objective of rooting out black economy.

The fallacy of odds and evens

June 1, 2016

In an effort to control high pollution levels in the city, the Delhi government recently ran a vehicle rationing scheme on a trial basis. The question is whether vehicle rationing is enough to reduce pollution substantially and whether other possible interventions by the government could be more effective. As per the Delhi government plan, private vehicles with odd and even number plates were allowed on the roads on alternate days from Monday till Saturday every week from 1 to 15 January. Several categories of vehicles—such as two-wheelers, CNG (compressed natural gas)...

Pros of a spot gold exchange in India

June 1, 2016

Although India is the world's second largest gold consumer with an annual demand of nearly 1,000 tonnes, it lacks many key elements of an efficient gold ecosystem. The gold market here is plagued by fragmentation, with prices varying significantly across channels and locations. The quality of gold also varies widely. Jewellery rather than gold bars, gold coins, or gold-linked financial products, still dominates retail demand. Large jewellers and traders mostly import refined gold from international markets, such as Dubai, causing loss of economic value and jobs in Indi...

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