An introduction to BREXIT BREXIT refers to the withdrawal of the United Kingdom from the European Union. The European Union is an economic and political union of 28 European countries. It was established in January 1958 and at that time it was known as the European Economic Community. It was started with only 6 countries […]
The focus of this paper is to discuss models that can provide quantitative methods to estimate future exchange rates. The factors which can possibly affect the USD-INR exchange rates are inflation, interest rates, current account deficit, public debt, political stability and economic performance. Economists have been studying various phenomena to identify and implement models that could justify the fall or rise of the value of one currency with respect to the another such as Purchasing Power Parity Theory, Interest Rate Parity Theory, International Fischer Effect and Balance of Payments Theory. From the perspective of the economic models, the empirical data suggests that the exchange rates can be predicted fairly accurately. Though
the models have certain assumptions which may not hold true in all actual scenarios, still they are able to predict the rates quite accurately.
-Hradayesh Kumar Pathak | Neeraj Nayan Introduction In this essay, we are mainly going to emphasize how the appreciation of the US Dollar i.e., USD against other currencies would impact different sectors of an economy in the context of India. The growth trajectory of the Indian Economy post the Liberalization, Privatization, and Globalization (LPG) reforms […]
–Winston D’Souza and Sushma Kudva Introduction Indian Rupee (INR) has depreciated against US Dollar (USD) the most (about 8.3 percent) in comparison with other major currencies such as Euro (EUR), Great Britain Pound (GBP), Japanese Yen (JPY) and Chinese Yuan (CNY) in the last five years. The USD appreciation is due to various factors such […]
Steel being one of the important materials of industrial development,
determines much of a country’s economic development and growth. However,
due to its oversupply across the globe, market players in India needed to sell
the steel products at a lower cost. Low capacity utilization further decreased the
production and sales volume of Indian Steel Industry. These made the highly
leveraged firms incapable of repaying their debts and be listed as defaulters by
Insolvency and Bankruptcy Code (IBC), thereby, proposed a paradigm shift
from ‘Debtor in possession’ to ‘Creditor in control’ as a new plan for liquidation
of new stressed assets. For existing ones, it allowed acquisitions by the existing
players. This led to the acquisition of Bhusan Steel Limited (BSL) by Tata Steel,
Electrosteel Steels by Vedanta and Monnet Ispat & Energy Ltd by JSW steel.
Such acquisitions did not only increased the capacity utilisation and profitability
of the acquirers, but also aided the lenders of the stressed assets realise amounts
to pacify their losses, thereby boosting the overall economy.
A merger is a concoction of two companies to form a single entity where both assets and liabilities are merged together. In an acquisition, one company “takes over” another company where assets and liabilities of the acquired company become part of the “acquirer” company. There are 4 different types of M&A: Horizontal: Horizontal M&A happens […]