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Finance & Capital

Eurozone crisis: On the brink of chain reaction

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“The expansion of the European financial crisis and its deepening into a political crisis has followed a clear causal chain produced by a series of missed opportunities.”

Eurozone refers to the Economic and Monetary Union of member states of the European Union. Members of the Eurozone have adopted the Euro as their common currency and sole lender. The monetary policy of the Eurozone is laid out by the European Central Bank (ECB). Fiscal Policy, however, is the domain of individual member countries. The eurozone currently consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The roots of the ongoing economic crisis in Europe began in early 2009, as a knock-on effect from the 2008 global financial crisis, which had already claimed Iceland as a victim. Iceland was not an institutional issue for the EU, but in 2009 Eastern members of the EU not using the euro began to have balance-of-payments problems. They suffered effective devaluations of their national currencies and sought help from Brussels to resolve their mounting budget deficits. In response, the EU doubled the funds in an existing facility to address balance-of-payments problems. Among the European countries that are affected mainly by the ongoing Eurozone crisis are Portugal, Ireland, Greece and Spain (PIGS countries). Iceland, the country which experienced the largest crisis in 2008 when its entire international banking system collapsed has emerged less affected this time as the government was unable to bail the banks out. In the EU, especially in countries where sovereign debts have increased sharply due to bank bailouts, a crisis of confidence has emerged with the widening of bond yield spreads and risk insurance on credit default swaps between these countries and other EU members, most importantly Germany.

Financial Action Task Force

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Indian has become a full-fledged member of Financial Action Task Force (FATF), an inter-governmental body, responsible for setting global standards on anti-money laundering (AML) and combating the financing of terrorism (CFT). Earlier, India had become Observer at FATF in the year 2006. Since then, India

has been working towards full-fledged Membership of FATF. FATF membership is very important for India in its quest to become a major player in the international finance. It will help India to build the capacity to fight terrorism and trace terrorist money and to successfully investigate and prosecute money laundering and terrorist financing offences. India will benefit in securing a more transparent and stable financial system by ensuring that financial institutions are not vulnerable to infiltration or abuse by organized crime groups. The FATF process will also help us in coordination of AML/CFT efforts at the international level.

International Centre for Automotive Technology, Manesar has now launched Online Certification System (OCS) to speed up certification and homologation, related processes. Online Certification System will help
enhance transparency and efficiency in all the critical steps of certification system. Reduced use of paper and less requirement of physical presence of customer will be major USPs of this system. In line with best global practices, OCS would also mean that manufacturers around the world can access their data 24x7x365. All processes such as Type Approval, Conformity of Production (COP), Research & Development projects related to vehicles, engines, generator sets and automotive components are supported by the system. Multi-user and multi-disciplinary options will ensure uniform access to all employees within a particular knowledge domain. Appropriate checks and systems built into OCS will ensure strict control and confidentiality at all times. Another benefit of this system is that clients can track the status of their projects anytime using the system. A single window will give updates on specifications, timelines and costs. iCAT is India’s premier automotive test agency, equipped for full homologation of automobiles as well as components. iCAT’s strengths also lie in its core capabilities in R&D jointly with manufacturers and automotive developers, besides certification and research work, a lot of which is also funded by the Government of India’s Ministry of Heavy Industries. iCAT is one of the most advanced testing and certifying agencies in the world and has a strong IT backbone to support all its activities.


A painful shift from APM to MDPM

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After almost two decades of reforms, finally, India saw partially shift from the regime of administrative price mechanism (APM) to market driven price mechanism (MDPM) in the oil sector. It is not surprising at all. This is a very natural and inevitable outcome of the opening of the country and ending of the protectionist regime in the light of the globalization. In fact, the shift from

Money as God

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A journey from salvation to depression

God rides on rituals, money rides on technology;
God gives salvation, money gives depression.

God is a creator of human beings and human beings are creator of mon ey. In fact both God and human beings are creators. But there is differ ence between these two creators; God’s creation is perishable whereas human’s creation may