Sudip Bandyopadhyay’s Blog

India is poised for exponential growth during the next 5 years.  This growth is expected to be significantly higher than the European and US economies.  Consequent upon this, India will continue to attract more and more investments from abroad.  Proportionately more domestic savings will also get channelised to the capital market both directly and indirectly.
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The Greenspan idea that monetary and regulatory policy cannot prick asset price bubbles but should deal with the consequences when the bubble has burst – now looks dangerously quaint.  The intellectual justification for the Greenspan idea – was that identifying equilibrium levels of asset prices is difficult; and policy tools to prick or limit bubbles [...]

“Freedom!” is a perennial rallying cry, but “free markets!” never had the same ring to it, even in years where the record of free markets looked impressive. This has not been one of those years. So was 2008 the year that capitalism died? And if not, is 2009 the year that we should put capitalism [...]

Diversify. That was the mantra investors heard in recent years. Investing in a range of assets was supposed to improve overall returns as these were uncorrelated bets.
This year world stock markets lost almost $ 30,000 bn in value. Oil prices fell by two-thirds. House prices dropped. Bonds – except for government [...]

With the recent sharp decline in Chinese manufacturing output, the global decoupling theory seems to have died a well-deserved death.  The idea that developing countries had become less dependent on US economic conditions, and so were insulated from the US crisis, was based on a potent combination of bad analysis and wishful thinking.  In fact [...]