Did This Straw Break the Finance Sector’s Back? T. Sabri Oncu

I will define the straw and start with quoting from my July 2017 H T Parekh Finance Column titled “Debts That  Cannot Be Paid Will Not Be” (Öncü 2017). With my June 2015 H T Parekh Finance Column article titled “When Will the Next Financial Crisis Start?” [Öncü 2015a] I initiated an investigation of the possibility of a new phase in the ongoing global financial crisis (GFC) that started in the summer of 2007. [This article was retitled on the Policy Research in Macroeconomics website as “What Straw Will Break the Finance Sector’s Back?” when it was republished three days…

The Push for Privatizing Banks Prabhat Patnaik

From the very beginning there has always been a demand for undoing bank nationalization in India. This demand naturally gathered momentum with the adoption of neo-liberal policies. It was completely unacceptable to international finance capital that the bulk of the banking sector in a country like India should remain under public ownership. Accordingly, “friends” of the Wall Street working in the U.S. administration like Tim Geithner and Larry Summers would visit India and demand of our government that, even if it could not privatize the entire banking sector, at least it should send a “signal” by privatizing the State Bank…

A Bibliography of Books on Finance: An idiosyncratic account of an autodidact’s financial education Andrew Cornford

This is a list of the books on financial risk management and regulation as well as related aspects of finance used by me for learning – since I first began to write commentary on the subjects for UNCTAD and then for organisations such as the Group of 24 and NGOs including the Observatoire. This list was requested by someone who felt that economists nowadays make relatively little use of books, preferring journal articles and materials extracted from the internet. My own preference for books stems principally from two sources: my temperament which prefers fleshed out exposition; and the requirement of…

Blending Finance Not SDG Financing Silver Bullet Jomo Kwame Sundaram and Anis Chowdhury

After largely failing to provide 0.7 per cent of their Gross National Income (GNI) in aid to developing countries for almost half a century since making the commitment, donor countries have recently promoted blended finance (BF) as a solution to the financing for development challenge. Blending refers to combining public development funds (in the form of grants, technical assistance or interest indemnification) with loans from private lenders. Following adoption of Agenda 2030 for the Sustainable Development Goals (SDGs), the OECD and the World Economic Forum (WEF) claimed that "blended finance represents an opportunity to drive significant new capital flows into…

Trump’s Protectionism Prabhat Patnaik

On March 8 Donald Trump made an announcement which according to many has the potential of starting a global trade war. He announced that the U.S. would be raising tariffs on imported steel by 25 percent and tariffs on imported aluminium by 10 percent. Now, the WTO allows tariffs under certain circumstances, against for instance some country that is “unfairly” subsidizing its exports, or is dumping its goods, which means charging higher prices on the domestic market for the same goods that are sold cheap in the export market. It also allows tariffs under a “safeguard” clause whereby a country…

Where’s the Money, Mr Jaitley? Jayati Ghosh

This government is especially good at optics, at managing public perceptions to persuade people that it is working for them, rather than doing so. So it is no surprise that Arun Jaitley’s pre-election Budget Speech went on about how much his government cares for the people, the poor, for farmers, for women, for people running small and micro enterprises, and so on. Many major claims were made: not just about the recent past, but about the coming fiscal year, with supposedly massive increases in public spending that would be directed towards these hitherto-ignored categories of people. But the actual increases…

The Demise of Bank Credit C.P. Chandrasekhar and Jayati Ghosh

Growing economies generally show increasing deployment of bank credit – but in India this has been decreasing for years and recently has been almost flat. What does this suggest about the growth process and the health of the Indian economy. Bank_Credit  (Download the full text in PDF format) (This article was originally posted in the Business Line on 1 January 2018.)

GE’s Switch Stephen Maher

The resignation of General Electric CEO Jeff Immelt last month is the latest sign of the broad restructuring of political and economic power currently underway in the United States. His departure, and John Flannery’s arrival, reveals a lot about the new phase of financialization that has emerged from the Great Financial Crisis. As financial markets and institutions became a more important part of the economy in recent decades, so too did they take on a larger role within corporations themselves, even ostensibly nonfinancial enterprises. This fundamental reorganization of corporate power eroded the institutional foundations of the New Deal’s so-called corporate…

Lecture series by Professor C. P. Chandrasekhar on ‘Karl Marx’s Capital & the Present’

The Safdar Hashmi Memorial Trust (SAHMAT) organised a series of four lectures by the eminent economist Prof. C.P. Chandrasekhar to commemorate 150 years of the publication of Volume I of Karl Marx’s seminal work, Capital at Indian Habitat Centre, New Delhi. First Lecture (on 9 September 2017) The first lecture, titled ‘Capital and the critique of bourgeois political economy’, was delivered on 9th September 2017 at the India Habitat Centre in New Delhi. In this lecture, Professor Chandrasekhar talks about Marx’s analysis of capitalism as an inevitably transient mode of production in a constant opposition to political economists of that period.…

Scaling up Development Finance Jomo Kwame Sundaram and Anis Chowdhury

The Business and Sustainable Development Commission has estimated that achievement of Agenda 2030 for the Sustainable Development Goals will require US$2-3 trillion of additional investments annually compared to current world income of around US$115 trillion. This is a conservative estimate; annual investments of up to US$2 trillion yearly will be needed to have a chance of keeping temperature rise below 1.5°C. The greatest challenge, especially for developing countries, is to mobilize needed investments which may not be profitable. The United Nations and others have revived the idea of the International Monetary Fund (IMF) issuing Special Drawing Rights (SDRs) to finance…