Monday , November 30 2020
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Amol Agrawal: Mostly Economics

Mostly Economics is an India focussed economics research blog run by Amol Agrawal. He covers a wide range of economic topics while frequently updating his audience on the Indian economy.

Fischer Black Prize 2021 awarded to Matteo Maggiori

Fischer Black Prize is awarded to promising young financial economists under age 40. It is the finance equivalent of John Bates Clark Medal given to economists under 40. Fischer Black Prize for 2021 is given to Prof Maateo Maggiori of Stanford Univ: Matteo Maggiori has been selected by the AFA to receive the 2021 Fischer Black Prize for an outstanding financial economist under age 40.  He is Associate Professor of Finance at the Stanford Graduate School of Business, where he has taught...

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Frenzy and Debate over a RBI Internal Working Group report: Governance, not ownership, is key

On 20-Nov-2020 RBI released a report of the “Internal Working Group to Review Extant Ownership Guidelines and Corporate Structure for Indian Private Sector Banks”. Who would have imagined such a heavy worded report to create such a frenzy and debate.  Whatsapp groups are full of articles and discussions. Here is my piece in Hindustan Times on the report. I could not be more divided on a banking topic. While there is strong evidence of corporate promoters mismanaging banks, there is...

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From Valuable to Worthless and Back Again: Pre-1950 Chinese Currency

Dr Richard Appel, a numismast has a nice piece on pre-1950 Chinese currency: The year 1949 saw the culmination of the long, bloody Chinese civil war that had begun in 1927. That was when Chiang Kai-shek’s governing Republic forces initiated a purge of their opposition, the Chinese Communist Party, that was steadily gaining strength and followers. By the early 1930s, the Communists had re-grouped and gained control over large swaths of China. The Republic responded and by late 1934, was...

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What’s in a name: Name of Saudi Arabian Monetary Authority changed to the Saudi Central Bank

Interesting development in the middle-east. The Saudi Arabian Monetary Authority changed its name to Saudi Central Bank and the central bank got new objectives and independence: The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, has approved the Saudi Central Bank Law. The new law includes changing the name of the Saudi Arabian Monetary Authority to the Saudi Central Bank, with direct reporting to the King. The Saudi Central Bank will continue to enjoy financial...

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Responses of International Central Banks to the COVID-19 Crisis

Jacob Haas, Christopher J. Neely, and William R. Emmons in this research paper have a useful timeline of the 4 central banks: This article reviews and explains the recent policy reactions of the Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan to the financial and macroeconomic turmoil caused by the COVID-19 pandemic. The financial and monetary policy actions of major central banks in the most recent crisis have, by some metrics, surpassed their...

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What pay ratios in NIFTY50 companies tell us about income inequality in India?

Reetika Khera and Meghna Yadav in this ideasforindia research article: In the wake of the economic crisis triggered by the Covid-19 pandemic and associated lockdowns, demands for relief from the corporate sector were as vocal as those for affected workers. However, the same corporates were simultaneously paying shockingly high salaries to their CEOs. Analysing data from NIFTY50 companies for 2019-20, Khera and Yadav show that large inequalities exist between remuneration of top...

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LVB failure: Mirror mirror on the wall, which is the next bank in India to fall?

My new article in Mint (good to be writing for Mint after a long gap). The article discusses failure of Lakshmi Vilas Bank and how some of the Old Private Sector Banks look weak as well. While I don’t address the mirror question very specifically but there are some pointers. This entry was posted on November 24, 2020 at 10:21 am and is filed under Indian Economy/Financial Markets. You can follow any responses to this entry through...

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Regulating Fintech in Europe: Lessons from the collapse of Wirecard

Very important research by Giorgio Barba Navaretti, Giacomo Calzolari, Alberto Pozzolo. Regulators and central banks will soon be dealing with fintechs and their failures. Wirecard gives us some lessons for future: The default of Wirecard highlights several problems in the regulation and supervision of Fintech companies, with regulatory holes in investor protection, customer protection, and financial stability. This column argues that since Fintech companies can be very complex, their...

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Gulags, crime, and elite violence: origins and consequences of the Russian mafia

Jakub Lonsky of Bank of Finland in this working paper does a lot of mining of references over 100 years : This paper studies the origins and consequences of the Russian mafia (vory-v-zakone). I web scraped a unique dataset that contains detailed biographies of more than 5,000 mafia leaders operating in 15 countries of the (former) Soviet Union at some point between 1916 and 2017. Using this data, I first show that the Russian mafia originated in the Gulag – the Soviet system of forced...

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