It is important for us to note that
inflation, while a function of growth, is actually caused by money supply
growing faster than the rate of economic growth. In essence, Inflation is
directly correlated to more cash flowing in the system than required to
maintain market equilibrium.
1.4 Trillion USD estimated to be sitting in Swiss Banks….While
the numbers are wild estimates at best and may vary greatly in reality, the
fact remains that there is an obscenely large amount of undocumented cash in
circulation.
A lot of black money was being funneled
out of India and it actually kept money supply in control but nowadays,
this money is re-entering the Indian market via the assistance of financial
managers who aim to provide annual returns of between 10 percent - 20 percent.
We need to note that it is only common sense to reinvest this money in a market
like India, via assets like stocks, bonds, and even real estate rather than let
it accrue interest at a paltry one to two percent a year in Switzerland.
(Here are the slides for the Presentation)
-Sohoum and Shreyans,
Presidency University
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