Meet Trill: an innovative financial product that can help investors and nations alike. Even before inflation-indexed bonds reach India, a recent study by Mark Kamstra of York University and Robert J. Shiller of Yale University make a case for a new security. Tied to the US current GDP, the Trill, as the authors call it, would pay one-trillionth of the GDP. And with investor appetite for risk falling and the government becoming a larger player in the global financial sweepstakes, the Trill could be worth exploring and expanding. Read more
Why is the drought of 2009 getting out of hand? Why hasn’t it caught the aggressive imagination of the opposition parties? Are 330 million people (half of the 660 million who live on agriculture) not large enough to serve?
Or is it that since national elections are over, the parties can let them be (the government is helplessly trapped in inertia; led by the imploding BJP the opposition is too busy looking at its belly; and the agriculture bureaucracy waits to study the situation)? Read more
The new direct tax code fails to convince me on how it would better enforce the creation, distribution and proliferation of black money. In theory the Direct Taxes Code Bill 2009, put up for public debate last week, has enough provisions — nine pages that define concepts from ’round trip financing’ to ‘arm’s length price’ — for the “prevention of abuse of the code”, including “special provisions to prevent evasion”. Read more
Amartya Sen never ceases to illuminate — if you spot a Sen in any bookshop, buy the book without a second thought. The Idea of Justice, his latest book released last week, maintains the momentum. It is wide in its expanse, deep in its perspective, insightful all over — and provocative in parts. Read more