Developing economies are bound to play a larger role in financial markets as their share of global capital is seen rising to 50 percent by 2030 from less than one- third today, the World Bank’s chief economist said.
World Bank Chief Economist Kaushik Basu recommended that developed nations let inflation accelerate for a limited period to prompt a faster exit from global economic stagnation he sees lasting two more years.
Major economic reforms in India are unlikely to take place before 2014, when a new federal government is voted into power, Kaushik Basu, chief economic adviser in the finance ministry, said in Washington yesterday, Press Trust of India reported.
India’s inflation rate may “peak” in August and will be about 10 percent, Kaushik Basu, the chief economic adviser in the finance ministry, said after the price gauge eased for a third straight month in July.
India’s central bank needs to consider a credit crunch while setting interest rates after payment of license fees for third-generation phone services drained cash, said Kaushik Basu , chief economic adviser in the finance ministry.