By Amit Bakhirta “A weak currency is the sign of a weak economy, and a weak economy leads to a weak nation” Ross Perot The Mauritian rupee, our dear nation’s currency, has depreciated by a mindboggling 36% over the past decade! Any foreign investor would be rightly concerned on the outlook thereof. No one [...]
By Mubarak Sooltangos In the previous issue of Conjoncture, the ineffectiveness of interest to promote savings, to beef up economic activity by supposedly encouraging investments, to discourage borrowing for consumption, to control inflation and to support national currencies were demonstrated. In this present paper, the harmful side of interest will be analysed, namely its [...]
By Mubarak Sooltangos The world is so deeply entrenched in a monetary system where interest holds a key role, and all economics and finance professionals, worldwide, are so subdued to the paradigm that the doctoring of interest rates can change a national economy for the better that my attempt to prove the contrary may [...]
By Amit Bakhirta “Do not save what is left after spending, but spend what is left after saving…” - Warren Buffet Mauritius faces more severe long-term economic scarring than Moody's anticipated a year ago, which will reduce both economic and fiscal strength. Indeed. We today highly appreciate a first indication that our borders shall [...]
By Dhanesh Narroo Fiscal policy dictates the fundamentals of the economy and governments are tasked with regulating the economy to achieve desired targets. Unemployment, economic growth and price stability are three consequential areas of fiscal policy that are crucial to the economy. However, politicians often distort figures and definitions so as to satisfy their [...]
By Sameer Sharma Conventional monetary policy is about the central bank having a policy rate which sets an interest rate floor for the interest rate structure of the economy. All other interest rates are derived from this floor with the addition, of course, of various risk premias such as term premia, inflation risk premia, [...]
By Henri Lepage Libertarians are rightly cheering to the rise of crypto-currencies. For the first time ever, initially with Bitcoin and now with Libra, central banks national monopolies are facing the prospect of a real market competitive challenge. That being said, the idea of central banks having to face private rivalry is not as far [...]
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