Piecing together disparate data for economic and market insights
In this chat we put the recent changes to GST into context, discussing the history of indirect taxes in India, some of the challenges in implementing GST, and the impact of this reset on inflation, demand, and growth. We discuss how rate rationalization can boost consumption without straining fiscal math, how input tax credit works … Read more
Continuing fiscal laxity in the US means monetary policy must do more of the inflation fighting, increasing risks of financial accidents Neelkanth Mishra | Last Updated : May 08 2023 | 10:16 PM IST This appeared in the Business Standard on 9 May 2023 (link). Volatility in stock prices of US banks has persisted, even … Read more
Growth downturns can expose vulnerabilities that increase market risks Neelkanth Mishra | July 4, 2022 22:44 IST This appeared in the Business Standard on July 5, 2022 (link). There are two drivers of market downturns: Cuts to forward earnings estimates and a decline in the price-to-earnings (P/E) multiple that investors ascribe to them. A 15 … Read more
Letting the rupee weaken may be the least bad option; raising interest rates to slow imports is too blunt an instrumentNeelkanth Mishra | Last Updated at May 2, 2022 22:35 IST This appeared in the Business Standard on May 3, 2022 (link). There is turmoil in the global economy. First Covid and then a war … Read more
Indian government bonds are now cheaper than Indian equities. The post-Budget rise in bond yields in India is more due to plumbing challenges than insufficient savings Neelkanth Mishra | Last Updated at February 7, 2022 23:20 This appeared in the Business Standard on February 8, 2022 (link). As economies emerge out of the shadows of … Read more
Tax receipts are surging and markets are primed for higher state government deficits, but states are struggling to spend Neelkanth Mishra | Last Updated at January 11, 2022 00:13 IST This appeared in the Business Standard on January 11, 2022 (link). One can easily spend a few thousand rupees, maybe even a few lakhs, but … Read more