Meghnad Desai Academy of Economics

Our visit to the National Stock Exchange (NSE) was truly eye-opening, as it guided us through a spectrum of financial concepts, from the basics to advanced market dynamics. Starting with fundamentals, Mr. Raza introduced us to major stock indices like Nifty and Sensex, which track the performance of top companies. Learning about these indices gave us a practical understanding of market trends and how they reflect broader economic changes. We also explored index funds, as well as the distinctions between shares, bonds, government securities, equity, and debt—essential building blocks in finance.

As we progressed, Mr. Raza introduced us to more complex topics such as futures, options, and derivatives. He further explained the differences between large-cap, mid-cap, and small-cap stocks, helping us see how these classifications impact investment strategies. One especially fascinating part of the session was hearing about the early history of stock trading, when brokers used hand signals to communicate before digital platforms existed. This led us to the hands-on segment of the session, where we learned to efficiently navigate the NSE website, gaining real-time insights into the exchange’s operations.

This introduction to financial principles laid a strong foundation for the next session with Dr. Tirthankar, who expanded our understanding of high-speed and high-tech trading strategies.

Building on what we learned with Mr. Raza, Dr. Tirthankar’s session focused on High-Frequency Trading (HFT) and how technology has transformed the financial landscape. He explained how powerful computers execute thousands of trades within fractions of a second in HFT, a concept that connected well with the technical knowledge we had just gained. This discussion also opened our eyes to various career opportunities within HFT, blending finance with advanced computing.

Dr. Tirthankar then introduced us to the Limit Order Book, explaining how limit orders allow traders to buy or sell securities at specific prices or better, reinforcing our understanding of strategic trading tools. By covering how buy and sell limit orders work, he gave us deeper insights into practical trading methods.

To round off the day, Dr. Tirthankar discussed the growth of trading in India, highlighting the incredible daily trading volume: over 14 billion derivatives are traded, which signals exponential growth in market participation. This data illustrated how finance in India is expanding, giving us a broader perspective on our economy's potential.

Our visit to the NSE was a transformative learning experience, linking fundamental principles with real-world applications and advanced trading technology, equipping us with both the theoretical knowledge and practical skills essential for navigating the financial world.

On September 21, 2024, we had the privilege of hosting an insightful seminar on Credit Risk Management (CRM) led by Nishtha Mehta at the Meghnad Desai Academy of Economics. The session delved deep into the intricacies of CRM, emphasizing its crucial role in safeguarding the financial stability and profitability of institutions.

Nishtha expertly covered the fundamentals of credit risk, including the different types—such as default risk and counterparty risk—and the importance of a robust CRM framework. She also discussed the latest methodologies in credit risk assessment, blending qualitative and quantitative approaches, and introduced key modeling techniques like Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD).

The seminar also explored strategies for effective credit risk monitoring, reporting, and mitigation, with a focus on industry best practices and the impact of regulatory frameworks like Basel III and the Dodd-Frank Act. Nishtha also took the time to address numerous student queries, providing clarity and further insights on the topic.

This seminar was a valuable learning experience for all attendees, providing actionable insights into the challenges and strategies essential for managing credit risk in today's dynamic financial environment. We're grateful to Nishtha Mehta for sharing her expertise and contributing to our ongoing commitment to academic and professional excellence.

On 19th November, Dr. Paramjeet Chawla delivered an insightful webinar for MDAE students on the topic "Economic Geography Approach to Cities and its Implications for Planning". Her lecture focused on the Morphology of Delhi National Capital Region's Economic Geography and its Implications for Planning, drawing extensively from her work on a report by the World Resources Institute (WRI), where she serves as a Program Manager specializing in Urban Economics.

Dr. Chawla began by explaining the Core-Periphery Theory, laying the foundation for understanding the economic and spatial dynamics of urban regions. She then elaborated on the structural transformation observed across the Core NCT (National Capital Territory), CNCR (Central NCR Periphery), and the Rest of the Region. This was contextualized within the sectoral decomposition of Delhi NCR’s economic growth and its contribution to GDP, as well as trends in growth, specialization, and industrial efficiency across different zones of the region. Through her narrative, Dr. Chawla emphasized the importance of examining cities through their specific economic lenses, highlighting how regional economic morphology can inform effective urban planning and development strategies.

The session was highly interactive, with students engaging actively and posing several questions that enriched the discussion. Dr. Chawla’s responses offered deeper insights and further clarified the complex dynamics of urban economic geography. Overall, the webinar was a stimulating and enriching experience, leaving the students with a deeper appreciation for the interplay between economic geography and urban planning, particularly in the context of the Delhi NCR.

Mr. Dharmakirti Joshi, Chief Economist at CRISIL, engaged with students in his webinar titled "Quest for Equitable Growth," which was conducted by the Meghnad Desai Academy of Economics (MDAE) in collaboration with Daulat Ram College, University of Delhi. It provided an in-depth exploration of India's economic performance, challenges, and the path toward achieving equitable growth. Mr. Joshi began by placing India in the global context, highlighting its strong growth momentum relative to major economies despite challenges such as fiscal consolidation, global geopolitical uncertainties, and persistent inflation. He emphasized India's unique position as a high-growth economy, supported by robust post-pandemic recovery, investment-led growth, and infrastructure development. However, he also shed light on the inequities within this growth, noting that while investment surged, private consumption, which constitutes a significant share of GDP, has not kept pace, reflecting uneven distribution across income groups. Mr. Joshi further elaborated on the key drivers of India's economic trajectory, including productivity gains fueled by advancements in digital and physical infrastructure and ongoing economic reforms, while emphasizing the need to address labor market challenges, including low skill levels, mismatches, and the underrepresentation of women in the workforce. He also explored the impact of structural factors such as climate change, which exacerbates food inflation and disrupts sectors like agriculture, and emerging technologies like generative AI, which, while enhancing productivity, raise concerns about widening inequities if not managed inclusively. Stressing the importance of balanced growth, he highlighted the need for skill development, vocational training, and leveraging technology to bridge gaps in education and employment. In conclusion, Mr. Joshi underscored the imperative of adapting to a rapidly evolving economic environment, marked by climate risks, digital transformation, and geopolitical volatility, to ensure that growth not only persists but is shared equitably across all sections of society.

The Meghnad Desai Academy of Economics was delighted to host Dr. Nischal Dwivedi for an insightful session on the power of interdisciplinary research. Dr. Dwivedi demonstrated how concepts and frameworks from seemingly unrelated fields—such as physics, biology, economics, and mathematics—can be applied to address complex modern-day research questions and generate meaningful solutions.

The session began with an introduction to complex systems, where Dr. Dwivedi explained their significance and demonstrated their presence across disciplines. Using sandpile theory from physics, he provided a compelling example of proportional growth observed in dinosaurs, humans, and birds. What began as an exploration into dinosaur femur proportions led to surprising insights into convergent evolution, illustrating how frameworks from physics can provide valuable tools for biological research.

He then transitioned to economics, discussing the tragedy of the commons as it applies to internet bandwidth. By analyzing data on ping packet variations across websites throughout the day, Dr. Dwivedi revealed patterns resembling a log-normal distribution, highlighting bandwidth fluctuations as a result of shared public resource usage. His work demonstrated how coding and data visualization can bring clarity to problems grounded in economic theory.

The discussion extended further into astrophysics as Dr. Dwivedi explained Kepler’s laws and their broader applicability. He proposed exercises analyzing power-to-velocity ratios in cars of various sizes and horsepower, encouraging students to observe how theoretical principles manifest in real-world systems. Additionally, he introduced random matrix theory, showcasing its utility in simplifying and understanding patterns in complex systems.

Throughout the session, Dr. Dwivedi emphasized the importance of curiosity-driven inquiry and the value of looking beyond disciplinary boundaries. He highlighted how tools, models, and frameworks from one field can uncover hidden structures and connections in another, allowing for a deeper and more holistic understanding of research problems.