economics

To sum up, if the savings rate in one part of the economy rises, without an equivalent rise in investment the only way for the economy to balance is for savings elsewhere to decline, and this can happen either in the form of a (usually credit-backed) consumption binge, or in the form of rising unemployment. The first is unsustainable.

With Chinese funding of European debt, Europe, ironically, would find itself enjoying part of the supposed benefits of exorbitant privilege. It would discover however that while more foreign funding sounds like a good thing, it is the same as larger current account deficits, which most certainly are not a good thing for countries struggling with

‘I realised why I had failed for years to sell him,’ said Mr Wesson. ‘I had urged him to buy what I thought he ought to have. Then I changed my approach completely. I urged him to give me his ideas. This made him feel that he was creating the designs. And he was. I didn’t have to sell him. He bought.’

But the purpose of investment today is to serve consumption tomorrow, and without a revival of consumption, the current surge in investment must itself be reversed. This suggests that overall growth in private-sector demand over the next few years is likely to be minimal.

This is the treadmill that "sell work" companies are trapped on. You save 50% on per-token costs, but your customers now expect agentic, multi-step workflows that consume 10-100x the tokens. The price per token drops; the tokens per task skyrockets. Net costs stay flat or rise — while your customer still benchmarks your price against the

It was inserted partly in the hope of boosting the worker’s weekly income, and partly in the hope that, by discouraging the employer from taking on anyone regularly for more than forty hours a week, it would force him to employ additional workers instead.

Power Sector (DISCOMs)

Electricity distribution companies, or DISCOMs, are a financial black hole for many states. Despite multiple reforms, DISCOM debt has grown by 8.7% annually since 2016-17. By 2022-23, accumulated losses hit ₹6.5 lakh crore—2.4% of GDP. Six states account for 75% of these losses. The Centre has offered states additional

Commodity prices often change direction ahead of bonds, which also makes them leading indicators of bonds at important turning points.

The first reason is that they’re volatile. The second is that they’re influenced by factors beyond what domestic policymakers can control. For instance, both food and fuel prices are governed by global demand and supply. The RBI increasing interest rates can’t bring down the price of Brent crude oil. Therefore, central banks focus more on core