When dealing with distress, the single big idea for avoiding value destruction is speed of action. Delays destroy value. When we cope with failing firms (through a bankruptcy code) or failing banks (through a resolution corporation), the measure of institutional quality is the recovery rate, and the key determinant of ...

A new threat

The demonetisation by the government removed 86 percent of the currency in circulation. This was all currency being held in the form of Rs 500 and Rs 1000 denomination notes. These notes are currently being replaced gradually by notes of Rs 100 and Rs 2000 denomination. There are two problems ...

There is no magic bullet that can reduce black/unaccounted income in an economy. The process that generates black money in an economic system is complex. Before acting on a remedy it is important to understand the process of black money generation. It is generally argued that complex tax system ...

On November 8, the US elected Donald Trump, and our government decided to trump black money. The move to discontinue the higher denomination notes in circulation is bold. However, boldness is not a virtue in and of itself. It needs good company. The decision creates some benefits, but it is ...