Daily Reads-65 (Level-1)

Reading Suggestion-1

Article Name: After Globalisation Promise
Author name: Pulapre Balakrishnan
Source: The Hindu
Category: Economy

Summary for this article

The article starts by taking about the hyperglobalisation era that was witnessed for a decade and a half starting from 1990 till the global financial crisis of 2008. This definitely creates a picture of a virtuous cycle of economic expansions among the nations.

The author further talks about the expansion of trade that had occurred at the last of quarter of the 19th century for close to 50 years, which was even greater than the recently concluded phase. The picture given is that of the waxing and waning of global traffic in goods, capital and people.

The Economists predict that hyperglobalisation was a one-time event and is unlikely to be repeated. The author then answers the question of “What underlines this scepticism?”. According to the author the 19th century globalisation was bolstered by the technological advances that facilitated trade, which dwarfed all the other technologies including the Internet when it comes to trade. And none of these are predicted to happen in the near future

The author says that a sluggish growth in the world economy for the foreseeable future means that India should take a look at its economic policy and consider replacing the premise on which the policies were set. He concludes, by saying that India should increase its public investment in order to meet the growing demands

Words to learn from this article :

Augment – increase
Spur – to boost or to encourage
Sluggish – inactive and dull
Conceit – being boastful
Wane – a gradual decline in something

Reading Suggestion-1: Click to read full article

Reading Suggestion-2

Article Name: When markets are on cloud nine
Author name: E.T. Editorials
Source: The Economic Times
Category: Economy

Summary for this article :

The article starts by quoting the figures of the staggering equities and the market capitalisation of Indian stocks, which hit 2 trillion dollars, marginally behind Germany and Canada’s with the NYSE serving as the giant in the ring showing closely, a whopping 20 trillion dollars.

The author says that the fizz in the market cannot be explained by the short-term considerations. “India remains a long term high growth story”.

Factors such as the ruling party’s overwhelming victory in UP and the implementation of the GST, creates a positive outlook for the long-term and the government with its available capital also has the will to carry out significant reforms

The author concludes, by saying that, there are two vital areas which the government should consider in order to carry out reforms and actions. One, solving the bad-debt problem in our banks and two, create jobs.

Words to learn from this article :

Spooking – frightening
Bumpy- not smooth
Bolster – to support or strengthen
Staggering – astonishing
Fizz –Release a lot of small bubbles and produce a hissing sound

Reading Suggestion-2: Click to read full article

Reading Suggestion-3

Article Name: Inflation Conundrum: on the record low retail inflation
Author name: Editorial team
Source: The Hindu
Category: Economy

Summary for this article :

The article starts by questioning the assumptions made by majority of the members of RBI’s Monetary Policy Committee with regard to prices. He points out the inflation dip which saw a huge margin when compared to the set targets. Later, the author says that with the recent implementation of the GST, the seventh pay commission’s entry and the waiver of the farmers’ debts by certain State Governments, the factors considered by the Committee in setting the inflation targets is yet to come into picture.

On a concluding note, he states that it is up to the RBI to assess the considered factors as to whether the current trends in inflation is likely to stay durable enough for it to make a move ahead such that it doesn’t end up weighing too much losses.

Words to learn from this article :

Sagacity – the trait of possessing good judgement and making wise choices
Conundrum – a problem that is difficult and confusing to deal with
Exhorting – to encourage someone in doing something
Anecdote – a short story or a tale

Reading Suggestion-3: Click to read full article