And the Nobel Prize Goes To...

by Deepthi Sai

Traditionally, economics suggests that markets have an innate tendency to work efficiently. Keeping supply constant, if demand for a good rises, then prices automatically start rising so that only the handful of people willing to pay the higher price can get the good. This self-regulating ability of markets was called the ‘invisible hand’ by Adam Smith, the pioneer of political economics. But what about something like dating? How exactly is one allocated the right partner? Surely there exist allocations that are not governed by prices. Dr. Alvin E. Roth of Harvard University and Dr. Lloyd Shapley of UCLA answered questions regarding efficient allocations in such cases for which they were awarded a Nobel Memorial Prize in Economic Sciences in 2012. So what exactly did their research entail?

Kingfisher Crashes

by Sreevidya Raman


Vijay Mallya has been in the news an awful lot lately, seemingly for all the wrong reasons. Caught in the eye of a financial storm, he is struggling to keep Kingfisher Airlines afloat. But what brought about this nasty predicament?

Winning the War on Drugs

by Deepthi Sai


Everyone knows that no government likes drugs, such as heroin, cocaine and ecstasy, flooding their markets. Drugs are very easy to get addicted to and push people to commit crimes so they can procure money to satisfy their needs. In order to combat this issue, the government spends a lot of money curtailing supply. Drugs are clearly illegal, but there still manages to be huge market for drugs in the underground economy. So how effective is this ban on drugs anyway?

Understanding Equity Shares

by Shweta Chopra


Equity shares are an important concept and a good investment opportunity in today’s economy. This article aims to provide you with some basic information about these shares, their characteristics and what role they could play in your lives.

Marginal Standing Facility: A Bank's Last Resort

by Deepthi Sai


The marginal standing facility (MSF) was introduced by the Reserve Bank of India (RBI) and has been effective since 9 May, 2011. Before we see what this facility entails, it is important to review a few terms. Also, it is highly recommended that you read the article ‘Banks, the State and Stuff’ first for better understanding.

Liberalizing the Indian Economy (Part 2)

by Sreevidya Raman


In part one of this article, we learned about liberalizing the economy in the sense of allowing foreign direct investments (FDIs) in the retail and aviation sectors. A second set of measures have also attracted a lot of - albeit mostly negative - attention. The hike in diesel prices of Rs. 5 per liter and the cap on LPG to six cylinders annually is not exactly a measure that is being welcomed by anyone, really.