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Wicked Loans and Bad Banks
C.P. Chandrasekhar
The crisis created by non-performing assets (NPAs) on the balance sheets of commercial banks, especially public sector (PSBs), does not go away. It only intensifies. An environment that triggered large inflows of foreign capital and a surge in credit after 2003 encouraged banks to explore new areas and terms of lending, which are responsible for the large exposures that are now turning bad.....

Budget 2017-18: Blinded by neoliberalism
C.P. Chandrasekhar
In an insipid speech that was repeatedly misread, Finance Minister Arun Jaitley presented on 1 February the contours of a budget that was shockingly short of substance. It left disappointed those who expected that policies to compensate sections hurt by the demonetisation experiment would be included and those who were looking for some measures to counter the demand slump.....

Bond Market Reversal
C.P. Chandrasekhar & Jayati Ghosh
For more than two years now the world has been subject to a bizarre monetary policyregime in Europe, Switzerland, and more recently the UK.  Interest rates paid ondeposits held by commercial banks in central banks have been set at negative levels.This policy regime, by forcing banks and investors to move out of cash to low riskgovernment and investment grade corporate bonds........

Is it India's Subprime?
The Indian corporate sector is grappling with a severe bad debt crisis, and as a result, the banks (public sector banks) are increasingly getting saddled with non-performing assets. Calling it India’s subprime crisis might be an exaggeration but I would just like to add ‘not yet’! Moreover in conditions such as these, with the global economic crisis in the background, it’s better to be cautious.......

Waning Stimuli
C.P. Chandrasekhar & Jayati Ghosh
Indian banks have not experienced the kind of stress they now face in a long time. Even before they could think up strategies to deal with large non-performing assets, consisting in particular of large bad loans to the infrastructural sector, they were hit by the chaos created by demonetisation, which disrupted all normal operations. With the government failing on its promise to adequately recapitalise the public sector banks, because of its adherence to self-imposed..........

Banks as Victims
C.P. Chandrasekhar
In the outcry against the disastrous demonetisation experiment of the Modi government one aspect that has not been given adequate attention is the damage it has done to the reputation and the balance sheets of the banks. Customers queueing before bank doors and ATMs seem on occasion more forgiving of the government than of the harassed bank employees, who are forced to ration out currency and offer those customers they can accommodate,........

Supreme Court should Frame an Eleventh Question on Demonetisation
Prasenjit Bose and Zico Dasgupta
The three-judge bench of the Supreme Court headed by the chief justice has recorded ten questions to adjudicate on the basis of the petitions filed against the November 8, 2016 notification issued by the ministry of finance (department of economic affairs), withdrawing the legal tender status of bank notes of Rs 500 and Rs 1,000 denominations........

Demonetisation and Banks' Lending Rates
Prabhat Patnaik

Spokesmen of the ruling party are busy these days spreading another falsehood, namely that, because of demonetisation which has brought in huge amounts of cash to their coffers, banks would be so keen to lend that their lending rates are going to fall, and that such a fall will act as a stimulus for the economy.This is completely wrong, and banks’ lending rates can never fall for this reason.....

Demonetization and India Inc
C.P. Chandrasekhar

In Finance Minister Arun Jaitley’s pre-Budget meeting with members of India’s Chambers of Commerce and Industry and other special category capitalists like exporters, the latter reportedly told him that while demonetisation is a welcome move, the government must “offset the immediate downturn that industry will go through”. This was accompanied by a range of demands varying........

Demonetization as the Basis for a Fiscal Stimulus
Prabhat Patnaik

A bizarre argument is doing the rounds these days. It states that the cash which gets disabled in the “black economy” because of the government’s demonetization measure, would enable the government to undertake an equivalent amount of expenditure with impunity; it can therefore spend more on infrastructure and other essential areas, or simply provide cash transfers to the people........

Demonetization as a Means of Fighting "Black Money"
Prabhat Patnaik

So many lies are being spread by the government which is currently busy wrecking the Indian economy in the manner of a bull in a china shop, so many spurious economic arguments are being trotted out by it, that one has to be extremely vigilant not to be swept away by this tide of unreason. In the current article, and the two subsequent ones to follow, I propose to examine some........

Finance Capital and the Nature of Capitalism in India Today
C.P. Chandrasekhar

A distinctive feature of the current phase of capitalism is the growing role of finance capital as an instrument to establish capitalist hegemony and facilitate the appropriation of surplus. In the developed countries this transition towards financial hegemony was the result of the inflationary crisis and stagnation that affected the OECD countries ......

Demonetisation: All pain for the majority
C.P. Chandrasekhar

The way the political establishment, sundry pundits, the media and a large section of the untutored or sycophantic elite of the country underestimated the extent of pain that the demonetisation measure would inflict on India’s poor and lower middle classes, points to their disconnect from a reality which bears little resemblance to the vision of a dynamic market economy they presume they inhabit.

Demonetization and its Discontents
Arjun Jayadev

You know it is trouble when the metaphor that is said to get describe your policy is backwards from the very get-go.  The demonetization decree was hailed at the outset by a breathless and chest-thumping media to be a “surgical strike’’ against black money.  But a ‘surgical strike’ is at least in theory precise and targeted- in this case presumably aimed at the ‘black’ part of ‘black money’....


C.P. Chandrasekhar
Thursday 30 March, 2017
The failure of the macroeconomic stance of shifting away from fiscal policy to an almost exclusive reliance on monetary policy has led to the phenomenon of negative rates in countries other than the United States, and the first sign of even a partial recovery in that country has been enough to set off a reversal.


Andrew Cornford
Tuesday 22 September, 2015
This article reviews the Indian model bilateral investment treaty and the major provisions of international investment treaties, often with special attention to their historical development.

Working Papers

Andrew Cornford
Thursday 12 December, 2013
Agreements on trade and investment in banking services may need to be revisited to accommodate macroprudential measures that are an important part of financial re-regulation.


Thomas Franco
Friday 17 March, 2017
There is huge hue and cry about the proposed service charges and minimum balance to be maintained by the customers’ of State Bank of India and it is justified. The only thing forgotten is that SBI is only an arrow and the shooter is the Central Government.


Greek Crisis: Very Little Wiggle Room for Syriza

The Continuing Risk of Derivatives



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