Posts

Showing posts with the label Economic Security

Decision Making as Output and Bounded Rationality

-
  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra
Post a Comment
Read more

State Led Reforms and the Switch from China: Some Thoughts

-
The past few days have seen reports from states like Madhya Pradesh, Uttar Pradesh, Gujarat among others about the announcement of new reforms in labour laws and land laws. Similarly some states have moved into reforming agricultural laws. Karnataka, Haryana, Orissa are among few other states that are following suit. It is expected that some more reforms might be announced in the next few days and weeks. A similar push from the Centre cannot be ruled out. Though most of these reforms were long overdue, apparently, the economic crisis induced by the Wuhan pandemic driven shutdown and the possibility of firms relocating production from China seem to drive these reforms.   Every crisis generates an opportunity. There is a silver lining in the darkest of the clouds. As the pandemic originating from Wuhan continues to create havoc, it is time to think of the post pandemic world order. It is possible for a gated globalization to emerge or a sort of economic NATO. Yet the first signs are
Post a Comment
Read more

The Post Pandemic Globalization

-
While the world fights the Wuhan originated virus, it is unlikely that the post COVID-19 world would be the same. As with any war, the post war architecture undergoes a transformation change with little similarity to the past. The new normal is something different. The current global architecture in social, economic, political, cultural, military and technological governance is a product of the discussions and thinking that emerged in the immediate post World War II regime. The end of the Cold War with the collapse of the Soviet Union or rather a little earlier through a collapse of the Berlin Wall drove the world into an era of unabashed globalization. The outcome of such an era was the optimization of business resources perhaps an euphemism for cost minimization given the level of price. This led the business to seek new hunting grounds for production something that led them to China. The post “ Coronavirus, Global Economy and Redundancy ” captures the need for redundancies du
Post a Comment
Read more