Re:Modi’s Cash Crackdown Failed, Indian Bank Data Shows
by JumpCrisscross on Monday September 03, 2018 @12:50AM
(#17900402)
> the capital in the market is predominantly from the Indian banking system
Indian banks' foreign currency assets have ballooned since demonetization [1], the principal source of which has been FDI. Long story short, Indian bankers' share of the economy grew by sacrificing the country's balance of payments.
As an American investor who knows many wealthy Indians: (1) demonetization was a boon to the wealthy in India, as it provided them with cover under which to move money and (2) the entire exercise has been destructive to the soundness of India's economy. Fortunately, the world economy is growing, so the country has time to mend. But this was a bone-headed move, albeit an expertly-marketed one.
Re:Modi’s Cash Crackdown Failed, Indian Bank Data Shows
by simonh on Monday September 03, 2018 @03:57AM
(#17901137)
Counterproductive economic policy, wrapped in popular rhetoric, but which largely hurts the base of the politician doing it most. Huh. It’ll never catch on.
Indian banks' foreign currency assets have ballooned since demonetization [1], the principal source of which has been FDI. Long story short, Indian bankers' share of the economy grew by sacrificing the country's balance of payments.
As an American investor who knows many wealthy Indians: (1) demonetization was a boon to the wealthy in India, as it provided them with cover under which to move money and (2) the entire exercise has been destructive to the soundness of India's economy. Fortunately, the world economy is growing, so the country has time to mend. But this was a bone-headed move, albeit an expertly-marketed one.
[1] https://rbi.org.in/Scripts/PublicationsView.aspx?id=18271