Global Financial Crisis-Asian View

I was just browsing through several articles at Business standard thinking what to present to you guys (I was afraid I would run out of topics soon!) when I came across this article by Prof. Shankar Acharya, Honorary Professor at ICRIER Delhi, and Chief economic advisor to the Government of India.

In his article, Prof. Acharya describes about a lecture conducted at ICRIER by noted economist Mr. Andrew Sheng. As rightly explained by Prof. Acharya, the market now is full of articles on the crisis, most of them being works of western economists. But there is few literature available on its affect on the Asian markets. Mr. Sheng's lecture describes about the very historical facts that led to build up the atmosphere for this crisis (Yes, according to Mr. Sheng, it had started as the fires of the previous downturn of 1929 was cleared up).


Click the Link below to read the whole article-

Global Financial Crisis-Asian Perspective

And needless to say, constructive criticism is invited on the article. Do post your comments.

Thats how Mao's cookie crumbled!!!

You pick up your favourite toy you used while you were a kid when you notice that familiar yet unwanted tag- 'Made in China'.

One of the reasons why Chinese goods are preferred lies behind the way the Chinese currency Renminbi or more popularly called 'Yuan' is evaluated.

You see, currencies like Indian Rupee, American Dollar, GBP (Great British Pound) are traded openly in a separate market (also called as forex). This trading happens as long as each unit of currency holds a certain value against some other currency and this value keeps on changing.

I remember when I changed my Binocular with my brother for his geometry box (which I badly needed!). For my bro (who was 7 years old), Binoculars were like heaven. So he gave in.

That's whats happening with currencies. They trade when they hold value.

Now, in the last decade, for 1$ you could get 8.28 Yuan of work done! So as a company in US, I send more $'s into China. But later, in 2005, China valued Yuan to 8.11 Yuan/$. Now I am only able to get 8.11 Yuan of work done by my Chinese friends for my precious 1 $. It is at this point that I start focusing more on quality. I now start looking at countries which offer more quality goods.