The G20 aftermath: The Delhi consensus

The Economist outlines India’s appeal in reporting on the aftermath of the G20 meetings – an interesting contrast with Brazil.

“India’s appeal to foreign investors is easy to see. Its economy grew by 8.8% in the year to the second quarter; the rupee has strengthened; and the Reserve Bank of India (RBI) this month raised interest rates for the sixth time since the crisis. In America, by contrast, the Federal Reserve is squeezing yields in an effort to revive a flagging economy, where unemployment remains too high and inflation too low: core consumer prices, excluding food and fuel, rose by only 0.6% in the year to October, the lowest rise on record. What is more surprising is foreign capital’s new appeal to Indian officials. Faced with heavy capital inflows in the year before the crisis, the RBI bought dollars to stem the rupee’s rise, tightened limits on corporate borrowing abroad and made it harder for registered foreign investors to bet money on behalf of unregistered ones. This time the response has been more relaxed. The central bank has chosen not to add to its $269 billion of foreign-exchange reserves and last month the authorities raised the quota on foreign purchases of government and corporate bonds.”

This is part of my survey of the 30 best articles from The Economist over the past two years to gain insight into whether Brazilian attitudes towards America have declined, and global attitudes towards Brazil — comments welcome!

Published by Janar Wasito

Janar Wasito is the manager of Magis Capital in San Diego, CA. He is a graduate of Harvard and Stanford Law School, and a former Marine Officer.

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