Administration & Management

…………….AHEAD FROM PREVIOUS POST

[i.e., Bank of Japan in Stimulus Mode]

The case of Bank of Japan and that of the Federal Reserves at USA turns to be a clear example of  two events, i.e, First being What is Meaning of Zero Interest Rate Regime and Second it demonstrates a great wide valley of interest rate deferential being created among Developed Economies on one side and Emerging Nations Economies on other side. The same was very much visible in the recently concluded IMF Meet of Finance Ministers and Central Banker of these two clear groups.

The two self styled protagonists to name United States of America for Developed Economies and the other one being China for Emerging Economy Nations, could not reach any point of consensus to overcome currency war spread across the Globe. In the ensuing blame game, on one hand USA was requesting IMF-World Bank to make and keep a through visible on currency valuation and exchange rate in China; China spread its worry and held United States of America responsible for destablinsing the economies of the nations grouped as emerging economies. China claimed that it was not only the alone case of what USA managed in Brazil, but China and India too are not being spared.

Few of nations coming under Emerging Economies out of a list of Twenty Eight now are taking the measures to start putting a tax regime on certain kind of cash inflows as well as inflows above a certain volume too. If all the emerging nations are going to be forced to adopt such measures, then very fabric of Global Markets and Globalization as process will become extinct soon and defeat the objectives of the agreements already signed in this direction. But then, this is a situation as on date, which has a very small but sure probability of  shaping out, given the behavior and turn being witnessed in the fiscal as well as monetary policies of Developed Economies.

In an effort to conclude the write up so as it could be gone through easily the is being turned to Indian Markets. Indian Markets may get saved from the damage that huge amount of Cash Inflows are capable of causing. But till the task is not over, the torchbearers at Indian Economic Infrastructure, may not afford a sound sleep.

As per the expectations and sentiments in Indian Economy at present, launch of a large number of IPOs is being expected and awaited. These IPOs may provide a cushion by working as antidotes against huge cash inflows, that may result due to the reasons of a Huge Interest Rate differential.

Its not all over, and will or may continue for longer time with or without time interval, but at the moment I would love to say—————————————————

Always Yours ————— As Usual ———————-Saurabh Singh