Soaring animal spirits can make Modi’s task easier












4 thoughts on “Soaring animal spirits can make Modi’s task easier

  • 2014.Jun.15 at 13:14

    What Swami misses spectacularly is that this boom brought on by animal spirits, enabled by a decade of financial deregulation may just turn into a huge crash the day animal spirits of the market run in the opposite direction. Indeed, India may be on a spell of financial instability mirroring the Latin American and East Asian crises of the 80s and 90s. There are certainly better ways of raising debt than simply relying on stock and bond markets.

  • 2014.Jun.04 at 11:45

    To me the concept of Animal Spirit was something new but I really liked the way things have been explained in this article specially taking into account the preresults liked to the formidable scenario’s. Mkt has already grown by 10% in last 15 days and that RBI will encourage Indians to invest surplus dollars abroad and the most important aspect of $ value falling from 68 to 58..Whoo Good article to read and understand the concept. I would definately share it with my friends too.

  • 2014.Jun.02 at 10:48

    P.S. Should we call for inclusion of a course on “Mob Psydhology” in the curruculum for commerce courses?

  • 2014.Jun.02 at 10:44

    Dear Sir,

    Yes Sir, you have correctly detected the animal spirit in our market for explaining the market boom experienced immediatly Modi’s getting the top post. A spirit of confidence and apprehension made our markets accelerate.

    I would like to take this a bit backward, the same animal spirit caused inflation (or shared a well sized portion of inflation) when retail sellers started hiking prices without any reason some 4 years ago, just “fearing” an economical crisis. Either these people were apprehending a severe economical crisis or they were just “making hey” while they could. We could feel our controlling agencies – Chidamberam, Manmohan and RBI totally baffled by this unexpected price rise in retail market, and they could not recover at all. Everybody whosoever was selling anything was increasing the rates, pointing towards price hike in all other areas. My grocer at the foremost. The prices rising in our retail market since 4 years are mostly due to retailers and wholesellers behind them, particularly when the Federal Bank issue heated up. If there existed a strict price control mechanism in our economics, inflation would not have reached such heights.

    Today this animal spirit is benefitting our economy, but afterall it is animal spirit and must be totally controlled. It is hoped that a good governance shall be able to do this.


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