Winning Team: Speakonomics from SPJIMR (Prasad Vaidya and Piyush Guliani)
Life, as we know it, is a balance sheet. Full of assets of individual self and liabilities for the society, most of which are firmly parked in the balance sheet of the mind, life breathes and lives economics with an authority only Adam Smith can wield! Together with the emotional investment and psychological instruments, a more skewed case of economic dynamism is hard to find!
So here goes the story of a SEC A household in the economic hub of India, Mumbai. The location is a home in the vibrant area of very high market potential value, Andheri and the characters in the story are:
[Time: 7 p.m. Enter Maya]
Maya: Hark! My life-long MOU with my husband seems to be under fire of an exponential Indifference Curve! What seemed to be a perfectly synergized JV of two equal partners in the beginning, my marriage has been giving only diminishing marginal returns day by day. Really, the Incremental Capital Output Ratio of my emotional investment in this alliance is on a decline.
Moneysh: Maya, here I come! Your sublime sight brings to me the same kind of exuberance as monsoons do to Montek Singh Ahluwalia and his team.
Maya: Huh! You are always late, just like the Indian IIP numbers.
Moneysh: Sorry Maya. My bureaucratic boss and overstretched infrastructure have proved to be bottlenecks in our family growth story.
Maya: Leave it! You are just as unreliable as a hot infusion of funds by FIIs in Indian Equity. All you do is cook up numbers in account books in the office and false stories at home. Your credit worthiness rating is worse than a junk bond!
Moneysh: Why do you always overheat with rage? This kind of behavior would only lead to sterilization of domestic peace. Let us not get into a debate again. Our arguments will continue like the complex deadlock at the WTO summits.
Where are our children, Yen and Yuan?
Maya: Now you will remember them! In today’s age, when economies are opening up and Indian companies are going abroad, what is stopping my children to go out and play base-ball?
Moneysh: Opening up of economies comes with its own troubles. The age of protectionism has come back. Call them home! After 7 p.m., it should be a closed door policy at our residence.
Maya: Your thinking is still very orthodox and conservative. Prepare to embrace the idea of a global village. Today, we could not go for shopping only because you were late!
Moneysh: Shopping!! A fad coming from the western developed economies of the world! You know that our current account balance is in the red and all our transactions are running on capital account at present. Do you want to put ourselves in the subprime bracket of borrowers by straining our scarce resources further?
Maya: Oh no! Depressing sentiments always give sad results, as evident from everyday SENSEX. It is because of people like you that recessionary attitudes are set in the society.
Moneysh: What do you know about the imbalance of payments that I have to face at the end of every month? I have to take strict action for our domestic fiscal policy and put stringent regulations on your inappropriate expenses.
Maya: Do not tell me about your screwed up financials. We already have a large enough cash reserve ratio that goes into the fixed deposit every month. We also keep enough funds reserved for the priority sectors of education, food and healthcare. It is because of your ‘other expenses’ that the balance of payment if not balancing.
Moneysh: My ‘other expenses’? Do I now need to give attach explanatory notes for every extraneous expense that happens?
Maya: Did I say so? I wonder why our increased purchasing power is not reflecting in the improved standard of life at home.
Moneysh: Do not worry Maya. But there are many invisibles in our family expenses that constrain our resources.
Maya: Hmm true. So I have to delay my plans of buying jewellery further just like the delay in introduction of GST.
Moneysh: Let it be so. Investing in our children will only help them drive their personal and economic growth in future. Look at the demographic dividend that they will be giving to the society. Yen and Yuan will definitely script India growth story 2020!
Maya & Moneysh [Together]:
Economy is the engine
That drives the family growth story,
Many factors playing a role
Just one of them being Money!