22.24        ndian     onom
     the world generate new knowledge and farming           big declines in the stock market by delivering a cut
     technology for the agriculture sector. Its research    in interest rates.
     products are “global public goods”, freely available
     to all.                                                    grey mArket
                                                            The ‘unofficial’ market of the newly issued shares
        greenshoe option
                                                            before their formal listing and trading on the stock
     A term associated with the security/share market.      exchange.
     This is a clause in the underwriting agreement
     of an initial public offer (IPO) by a company              growth recession
     which allows to sell additional shares (usually 15
     per cent) to the public if the demand for shares       An expression coined by economists to describe an
     exceeds the expectation and the share trades above     economy that is growing at such a slow pace that
     its offering price. It gets its name from the Green    more jobs are being lost than are being added. The
     Shoe company which was the first company to be         lack of job creation makes it ‘feel’ as if the economy
     allowed such an option (in the USA, early 20th         is in a recession, even though the economy is still
     century). This is also known as ‘over-allotment        advancing. Many economists believe that between
     provision’.                                            2002 and 2003, the United States’ economy was
                                                            in a growth recession.
          The company availing this option uses the
     proceeds (i.e. from the greenshoe option) to                In fact, at several points over the past 25 years
     prevent any decline in market price of shares          the US economy is said to have experienced a
     below the issue price in the post-listing period (in   growth recession. That is, in spite of gains in real
                                                            GDP, job growth was either non-existent or was
     such cases the aforesaid company uses the money
                                                            being destroyed at a faster rate than new jobs were
     to purchase its own shares from the market—as
                                                            being added.
     demand increases, the market price of its shares
     picks up).
                                                                heDge funDs
        greshAm’s lAw                                       These are basically mutual funds (MFs) which
                                                            invest in various securities in order to contain or
     The economic idea that ‘bad’ money forces ‘good’
                                                            hedge risks. They are investment vehicles that take
     money out of circulation, named after Sir Thomas
                                                            big bets on a wide range of assets and specialise in
     Gresham, an adviser to Queen Elizabeth I of
                                                            sophisticated techniques of investment. They are
     England. This law does not apply to the economies
                                                            meant to perform well in falling as well as rising
     where paper currencies are in circulation. The
     economies which circulate metallic coins (gold,
     silver, copper, etc.) of proportional intrinsic values      Run by former bankers or traditional
     face such situations when people start hoarding        investment managers by setting up their own
     such coins.                                            funds, they make a lot of money by charging high
                                                            fees typically 2 per cent management fees besides
                                                            20 per cent of the profits out of the investment.
        greenspAn put
                                                            As they are unregulated in most of the economies
     A financial market terminology named after the         (for example the USA, India, specially) and
     former chairman, of the US central bank, Federal       risky, they accept investments from wealthy and
     Reserve, to mean the helpful way he responded to       sophisticated investors. Hedge funds made news