Party Uthi Gayi: Gujarati Microeconomics and Global Financial Fragility

Abstract

Title: Party Uthi Gayi: Gujarati Microeconomics and Global Financial Fragility AbstractThis article draws a parallel between the traditional concept of "Party Uthi Gayi" in Gujarati trading culture, especially within Surat's diamond and textile markets, and the systemic risk theories put forth by Raghuram Rajan in his seminal 2005 Jackson Hole paper, "Has Financial Development Made the World Riskier?" It argues that the microeconomic dynamics of leverage, trust, and contagion in local Indian business ecosystems echo the same fault lines that underpinned global crises like LTCM (1998), Enron (2001), and Lehman Brothers (2008).