An autonomous research institute under the Ministry of Finance


Methods for measurement of delays in the bankruptcy process


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When dealing with distress, the single big idea for avoiding value destruction is speed of action. Delays destroy value. When we cope with failing firms (through a bankruptcy code) or failing banks (through a resolution corporation), the measure of institutional quality is the recovery rate, and the key determinant of ...

Runs on real estate companies?


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A new threat

Many households in India like to invest in real estate, even though this has not worked out as a great asset class. The Indian real estate business has been facing considerable difficulties in the present business cycle downturn. The recent `de-monetisation' is expected to adversely affect ...

Demonetisation and the Currency Substitutes


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The demonetisation by the government removed 86 percent of the currency in circulation. This was all currency being held in the form of Rs 500 and Rs 1000 denomination notes. These notes are currently being replaced gradually by notes of Rs 100 and Rs 2000 denomination. There are two problems ...

Demonetization: Cure and Care


There is no magic bullet that can reduce black/unaccounted income in an economy. The process that generates black money in an economic system is complex. Before acting on a remedy it is important to understand the process of black money generation. It is generally argued that complex tax system ...

Demonetisation: Don’t worry, Marry!


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Reams have already been written about the government’s move to demonetize old 500 and 1000 notes. Actually, it is not a sudden death for these notes but a gradual extinguishment. The 500 rupee notes will be replaced, new 2000 rupee notes will be introduced and nobody knows of the 1000 ...