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Tag Archives: Academic research & research papers

The Missing Link in Economic Development: Look beyond incentives

Prof Ricardo Hausmann in this Proj Synd piece: Like the proverbial man with a hammer who sees every problem as a nail, economists study the world through the lens of incentives, and have developed a rich understanding of how market participants make decisions. But although incentives are important, developing countries must do more than institute the right ones. Though economics can capture many of the subtleties of incentives, it has developed a relatively narrower palette with which...

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Franklin Templeton using nudging for e-voting: Green for Yes, Red for No

Interesting bit from Moneylife. FT India had goofed up its 6 debt funds and asked unitholders to vote for future of the schemes.   However, it has used interesting nudging techniques to push voters to select the winding option: The e-voting of unit-holders of six debt schemes of Franklin Templeton Mutual Fund (FTMF), which started on 26th December and would conclude on 29 December 2020, appears to be turned into a farce by FTMF, especially when the market regulator has been playing the...

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RBI’s inflation target at 4%: If it ain’t broke, don’t fix it

This new RBI research by DG Michael Patra and Hemendra Behera is creating a lot of buzz in media: This paper began with a question that goes to the root of FIT in India – is the choice of the target for inflation consistent with its trend? A target set below the trend imparts a deflationary bias to monetary policy because it will go into overkill relative what the economy can intrinsically bear in order to achieve the target. Analogously, a target that is fixed above trend renders...

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Digital Transformation – The Case of South India Bank

International Finance Corporation helped South Indian Bank transform digitally. IFC released a report on the digital transition of SIB: In 2016, IFC began a new project with South Indian Bank (SIB), a mid-sized private bank (currently the third-largest in southern India), to strengthen its digital capabilities. By doing so, the bank aimed to transform its retail and small and medium enterprise businesses (SMEs) to drive customer engagement and to mobilize deposits. SIB partnered with IFC...

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Money, Banking, and Old-School Historical Economics

Eric Monnet  and François Velde in this Chicago Fed research: We review developments in the history of money, banking, and financial intermediation over the last twenty years. We focus on studies of financial development, including the role of regulation and the history of central banking. We also review the literature of banking and financial crises. This area has been largely unaffected by the so-called new econometric methods that seek to prove causality in reduced form settings. We...

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Why current and retired central bankers feel threatened by Modern Monetary Theory?

The year has been full of debate on MMT with strong arguments for and against the topic. I just blogged about an article which argued what Alexander Hamilton would have made of MMT. James Galbraith in this piece takes a stand for the  MMT: It is not surprising that current and retired central bankers feel threatened by Modern Monetary Theory. With deep roots in the Keynesian tradition and a consistent commitment to achieving full employment, MMT shows that good economics and sound...

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RBI Bulletin Dec-2020

Several interesting research articles in RBI’s Dec-2020 Monthly Bulletin: he eight articles are: I. State of the Economy; II. Indicator of Economic Activity to Capture Real-time Spatial Momentum; III. Government Finances 2020-21- A Half-Yearly Review; IV. Rural-Urban Inflation Dynamics in India; V. Managing Exchange Rate Volatility in the time of COVID-19; VI. Services and Infrastructure Outlook Survey: Recent Trends; VII. Bank Lending Survey- Recent Trends; VIII. Seasonality in India’s...

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Thus spoke the Bank of Italy’s Governors: an analysis of the language corpus of the Concluding Remarks, 1946-2018

Valerio Astuti, Riccardo De Bonis, Sergio Marroni and Alessandro Vinci in this Bank of Italy paper: This paper is the first to construct and analyse the language corpus of the Concluding Remarks (CF from now on), using the texts from 1946 to 2018. The first part of the paper summarizes the characteristics of the dataset, which contains around 850,000 words. The second part analyses the topics addressed by the Bank’s Governors over seventy years of Italian economic history. The third...

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Exploring central banks’ art collections

Danae Kyriakopoulou is Chief Economist and Director of Research at OMFIF in this piece looks at fab art collections of central banks: What do the world’s largest pink diamond, a 17th century Stradivarius violin and a gold sculpture of the Buddha from the Yuan dynasty have in common? Aside from being highly valuable objects both in artistic and monetary terms, they all share an unlikely owner: a central bank (respectively those of Iran, Austria and Italy). The presence of art in central...

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The central bank balance sheet as a policy tool: past, present and future

Andrew Bailey, Jonathan Bridges, Richard Harrison, Josh Jones and Aakash Mankodi in this working paper: This paper focuses on what has been learned from the past decade of previously unconventional monetary policy measures and the emerging lessons from the effects of monetary policy responses to the Covid shock. The paper explores two observations from recent quantitative easing (QE) policies in detail. First, large QE programmes implemented quickly may be particularly effective in times...

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