Monday, October 15, 2012

In the last Two Years

1. I have survived.
2. I have watched economic theory in motion. It has filled me with much exhilaration.
3. I have witnessed the birth of an idea. I remember feeling privileged just being there. 
4. I have felt lonely in the crowds yet I have found solace in the solitude. I have enjoyed anonymity.
5. I have struggled.
6. I have realized that Google has somehow found me!
7. I have found out that the fast and the slow trains are not materially different.
8. I have worried but I have found immense support and strength in my sister. 
9. I have felt constrained by the limits of my own capability. I have felt frustrated.
10. I have, somehow, not given up.
11.I have made friends and lost some good ones.
12. I have found time even when I was busy.
13. I have wanted to change my phone but I have never got around to changing it.
14. I have watched numerous movies alone. I have enjoyed being alone.
15. I have read some old letters.
16. I have written a letter.
17. I have missed my grandparents and I have wished that there were still alive
18. I have realized that my times in Chennai, sans the auto-wallahs, were good.
19. I have enjoyed cooking.
20. I have dreamt the impossible dream.
21. I have enjoyed studying.
22. I have admired Sve more than ever before.
23. I have been confused and I have sought answers.
24. I have tried to find the answers myself.
25. I have felt abandoned
26. I have had infinite patience.
27. I have worked on many weekends :)
28. I have read.
29. I have enjoyed my work (touch wood).
30. I have become a Central Banker, I think!









Wednesday, June 20, 2012

Dude, they pay more on Fuel than we do !

Source: One fancy magazine with the Financial Times


Read the papers and you get a sense that Indians pay one of the highest taxes on fuel. And, when the petrol prices are raised, there is much hue and cry. The general line of arguments being:

1. The government should reduce taxes on fuel.
2. The government should not increase petrol prices as it will hurt the poor.
3. Rise in petrol prices will lead to inflation.



The first argument, perhaps, has some rationale. The government could, in theory, reduce the multitude of taxes imposed on fuel. However, in that event, the government could stand to lose out on revenue. One could argue that the typical Laffer curve effect could make up for the lost revenue. Whether, this will work or not is a moot point. For sake for argument, let us assume that the Laffer curve argument does work. This implies that demand for fuel would have to increase commensurately. Now, India imports most of its oil, therefore larger demand will, ceteris paribus, increase the trade deficit. Meaning we will have to pay to the world more than what the world owes us, which is not a very happy situation to be in. Therefore, reduction in taxes, though possible, may not be practical. On a related point, even some of the developed nations pay more than than India (refer to the chart above)(Source: T Magazine with the Financial Times and some calculations). Let there be calm.

The second argument is a classic one. Here is a question - When was the last time you saw a "poor" person owing a motorized vehicle that ran on petrol? Perhaps never. Yes, the middle class will be affected. The rationale for the government subsidizing petrol consumption is not well grounded. After all, loss to the exchequer is often made up by increasing taxes somewhere or the other. Therefore, subsidy on petrol will be made up by higher taxes else where.  

Coming to the third argument, petrol is primarily used as a fuel for private vehicles. This argument would imply that inflation will be cost push i.e.being caused by higher input prices. However, petrol is not an input in the production process. Bulk of the transportation of finished goods happens on vehicles which run on diesel. Therefore, the increase in petrol prices causing inflation is far fetched. 

On the flip side, de-controlled petrol prices have a number of benefits:
1. Prices rise but also fall depending upon the price of imported crude oil. 
2. Since, the subsidy burden of the government reduces, government finances are better. This is a good thing. Think Greece, think Portugal, think Spain and Italy.  
3. Paying market prices on petrol reflects the true demand for petrol thereby, perhaps, reducing demand (when prices increase) and lowering the trade deficit.

Now how about de-regulating diesel or LPG or both. Anyone?

P.S: These are obviously my views. But you already knew that, didn't you?

Saturday, March 17, 2012

The Open Letter to Tendulkar

Hi Sachin,

I am not sure I got the salutation right. I debated calling you champ, or Sir or little master or just simply God. I settled on Sachin because Sachin itself is a salutation in its own right. 

You do not know me or perhaps you do. I am one among many of your fans, another brick in the proverbial wall or another candle at the alter, if you please. However, this letter is not a treatise on your accomplishments or to congratulate you on your 100th. No doubt it is an accomplishment that is beyond all praise or wreaths. The feat is in every sense monumental. There is nothing I can say that will befit the occasion. Therefore, I refrain. 

More than your cricketing achievements, I admire your humility, perseverance and passion for what you do. Once a commentator asked you what kept you going after all these years, you replied "I care about playing for India". I must confess my eyes were almost moist. Whenever your achievements are talked about, your talent is often discussed with much fervour. We have hour length features on prime time about your natural ability, your destiny and your class. However, I feel that it is unfair and perhaps misleading to talk only about your phenomenal talent.  

I believe that we ought to discuss the process and the perseverance behind all the achievements. It can not be the case that you got this far only on your talent or your luck. No body is ever that lucky. One hundred hundreds is a bit far-fetched to be explained solely by luck. No doubt you are one of finest batsmen that ever played the game, but your numbers are way ahead of everyone else's and by that metric you are the greatest ever. Therefore, I would argue that talent is only part of the story. We ought to stress more on aspects of your game that have stayed beyond the focus of all cameras. The endless hours toiled at practice, the thought process, the preparation, the humility, the discipline. More than anything else we ought to focus on how you keep the passion going. If there is no passion, then, perhaps there is nothing else that matters enough. 

You have inspired me. I wish I could work as hard as you do. I wish I could handle pressure like you have done. You have made me believe that no dream is too big or too far if one keeps at it. It is befitting that you said today . "Chase your dreams because they definitely come true! I had to wait for one for 22 years. We  won the World Cup - that was my dream" 

Of course, dreams always seem far fetched, improbable and perhaps impossible. But if they are anything less then they are not dreams, just expectations extrapolated into the future. And of course, I, too, have dreams - far fetched, improbable and perhaps impossible. But I will chase them with all I am worth. You also did.

You made me dream, the impossible dream !

In admiration

A.
(Another brick in the proverbial wall)
:)





Saturday, January 14, 2012

Midnight's Child

I take the right at the newly constructed Vishwavidyala Metro Station on to Chhatra Marg and walk past the Vice Chancellor's bungalow.  It is past mid-night in December, I am heavily clothed. Heavy jacket, woolen socks, floaters but no shoes, muffler hanging around my neck and hands in the Levi's. My pace is slower than usual. I soak in the moment, the silence, the darkness, the chill and the solitude. Delhi has recorded historically low temperatures this year. I feel the tip of my nose going numb and cover it with the muffler, walking all this while. I approach the hostel gate of Miranda House to my right and PG Women's to my left. I pause for a moment and reminisce things that I should not have done and things that should have been done. I move on literally and in many ways metaphorically.

I am brought back to reality by the clickety-clack of a cycle-rickshaw that emerges from the darkness brought about by the canopy of tress beyond the university cooperative stores where the street lights have little effect. The cycle-rickshaw hurriedly passes by and disappears into the darkness as quickly as it had emerged. I walk on past the place where the U-Specials park in front of WUS on towards Ramjas passing Faculty of Arts, the Science Blocks, Faculty of Law and Nirula's. I stand in the middle of the road at the junction between Faculty of Law, Ramjas, D-School and St Stephen's deciding the direction to head in. The straight takes me to Kamala Nagar , the right towards SRCC and the left towards the ridge. 

I take the left and walk on beyond D-School, St Stephen's and Hindu. The long walk has ensured that the cold stays at bay, I let the muffler hang from my neck again. Soon enough I hit the cross road at Vishwavidyala Marg. A hot cup of tea is very tempting and I know that the possibility of getting one at this time of the night is the highest at Hindu Rao so I take the right towards Shri Ram Institute. However the though of the long walk back dissuades me and I do a 180 degrees and walk towards Gwyer hall hoping that I could find the chai wala outside the PG Men's. Now that Himmat Singh has shut shop after they moved the Maurice Nagar Police Station to near Patel Chest, the Vishwavidyala Marg is morosely quiet. Quite a lot has changed.

The chill  has ensured the chai wala's  absence so I decide to beat myself some coffee when I reached home.    I had been walking for longer than I thought I would, so I begin walking back home. I walk past Gwyer Hall, Faculty of Music and take the left on Mall Road and then the right at Hakikat Nagar and then the left at Nu Life Hospital and reach home, the mezzanine floor at 1944. I make my self the cuppa and begin reading Rushie's Midnight's Children.