Will the rout of financial markets in China trigger a storm in Indian markets too as widely anticipated? Are we really better off? Does the world believe in the monetary tightening and inflation fighting capabilities of RBI Governor Raghuram Rajan more than the Chinese policy makers? I think that Indian markets may get impacted on a short term but we have a good growth story long term!
[h=2]China’s Pain is India’s Gain?[/h]
The uncertainty has led to a capital outflow of tens of billions of dollars a month. Financial analysts say investors don’t believe repeated promises to avoid a bigger decline, so they are shifting assets abroad before anything valued in yuan loses value.
Williams, of Capital Economics, points to the counter-example of India, where central bank governor RaghuramRajan is credited with cooling inflation since 2013 with a strategy that included talking in detail about his goals.
“There is a much greater sense of trust among businesses and households toward the (Indian) central bank,” said Williams, “and we just don’t see that at all in China.”
A very elaborate article is given below
http://www.thequint.com/business/20...vestors-confidence-stock-market-crash-economy
[h=2]China’s Pain is India’s Gain?[/h]
The uncertainty has led to a capital outflow of tens of billions of dollars a month. Financial analysts say investors don’t believe repeated promises to avoid a bigger decline, so they are shifting assets abroad before anything valued in yuan loses value.
Williams, of Capital Economics, points to the counter-example of India, where central bank governor RaghuramRajan is credited with cooling inflation since 2013 with a strategy that included talking in detail about his goals.
“There is a much greater sense of trust among businesses and households toward the (Indian) central bank,” said Williams, “and we just don’t see that at all in China.”
A very elaborate article is given below
http://www.thequint.com/business/20...vestors-confidence-stock-market-crash-economy
