Opinion Economic dictionary

The global economic crisis has led to a great deal of rethink on accepted economic theories,strategies and even terminology. In India,the problem is compounded by the fact that a market economy and socialism operate in tandem,popularly referred to as populism. To survive in the jungles of the new world order,everyone needs to learn the new definitions and terminologies of economics and business. Here are some:

Current Account Deficit: What is happening to your bank account as inflation,EMIs,the rupee in free-fall and high costs of living start to make inroads into your earnings.

Broker: What your financial adviser has made you over the last three years.

Founding Father: Now refers to a person who founded a company,retired,and is asked to return to revive sagging profits and corporate image. He agrees,but brings his son along as part of the deal. In tech terminology,it is also called the Icon Effect.

Animal spirit: Referred to by the Prime Minister to describe the potential of Indian entrepreneurship. Till now,the only animals visible in the corporate jungle are the bears stalking stock markets since a growing list of corporate scandals,crony capitalism and sorry-looking balance sheets seem to suggest that the aforementioned spirit seems to have turned out to be a lot of bull.

Standard & Poor: The situation that many middle class Indians are finding themselves in.

Spot trading: Refers to traders who book commodities on the spot as opposed to over a period of time. Post IPL-6,it now refers to those who sell out to bookies for an over at a time.

Invisible hand: Economic principle postulated by Adam Smith,to do with a competitive marketplace and self-interest. In the Indian context,the invisible hand has been the one that pushes for hugely expensive populist programmes,in response to competitive politics and self-interest of the other hand,the one that symbolises a certain political party.

Reform redux: Finance Minister P Chidambaram stated this week that he was looking forward to more reforms. So are we. For a long time now. Nine years to be precise.

The credit crunch: Means that you can no longer afford the deposit on the Bentley you have been eyeing. In fact,the only ones who can afford a deposit on the Bentley are the birds flying overhead.

Economist: An endangered species visible occasionally during television debates where they confirm the First Law of Economists—for every economist,there exists an equal and opposite economist. There’s also the Second Law of Economists in operation since the start of the economic downturn—they are both usually wrong.

Intaxaction: The instant feeling of euphoria when you get a cheque for a tax refund.

Green shoots: Economists and Finance Ministry officials have been seeing green shoots on a regular basis over the past few years,even if no one else can. The propaganda to project signs of an economic recovery has now become so painful that the arrival of the monsoon is a relief since once can actually see the real thing.

Gold Control Act: Originally a legislation passed in Parliament after the 1962 Indo-China war when foreign exchange reserves dropped alarmingly,banning citizens from holding gold bars or coins. Now,thanks to P Chidambaram’s definition,he would like Indians to be more reserved about buying gold so he can tackle issues like reviving the rupee,and the economy,on a war footing.

Bill payment: Getting harder to clear by the day thanks to the current squeeze. Some Bills have been due forever it seems,as in the Companies Bill,GST Bill,Pension Bill,Insurance Bill,etc,which have been attracting little interest from other concerned but unconcerned parties.

Tax holidays: Originally referred to elimination of certain taxes. Now,with the rupee in freefall,it refers to the elimination of plans to holiday abroad,now a taxing experience.

Sensex: These days,thanks to moral policing and extreme positions,anything with the word ‘sex’ in it comes under attack. Much like what is happening to the Sensex.