Saturday , September 21 2019
Home / Tag Archives: Economics – macro, micro etc

Tag Archives: Economics – macro, micro etc

How advent of pension policy led to lower education in children: Case of Indonesia and Ghana

Prof Natalie Bau of UCLA in this voxeu piece point to really interesting findings from her new research. She says that families funded children’s education so that latter could take care of former during old age. However, as pension policy was introduced, this old age care was not needed which led to decline in education! In the paper, I examine whether the introduction of government pension plans changed cultural practices in Indonesia and Ghana. I study a set of cultural traditions...

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A brief (and fascinating) history of currency counterfeiting: Focusing on Australia and some other cases

Richard Finlay and Anny Francis of RBA in this research note give a fascinating account of currency counterfeiting. They focus on Australia but pull examples from other countries too. Perhaps one of the best things that have read in this year so far. Counterfeiting has a rich and varied history going back to the very earliest forms of money. It has been pursued for personal gain – although at the significant risk of jail time, or, in the past, death – as well as for economic and...

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Opening the toolbox: how does the Reserve Bank of NZ analyse the world?

Team of RBNZ econs in this article: This article describes how the Reserve Bank analyses international shocks and their implications for monetary policy. As a small open economy, New Zealand is particularly vulnerable to international shocks. The Bank has a long tradition of using a wide range of models to assess the impact of different types of international shocks and their spillovers to New Zealand through various channels. This modelling has explored the transmission of these shocks...

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Will the digital money be like the one-sided coin? History of one-sided and two-sided coins..

Superb speech by Johannes Beermann of Bundesbank. She says the advent of digital money is like a toss with the coin still hanging in the air. Which way it will land we have to see. She starts with how football matches are started with the toss of a coin and why two sided coins matter: Welcome to the Seehaus right at the heart of the English Garden. This park is a true landmark of the city of Munich, with a design inspired by British landscape architecture. It probably comes as no...

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Lesson from history of Rothschilds and US free banking

Lars Rhode, Governor of Denmark Central bank in this speech speaks on trust in financial services (what else to talk!). My topic is trust and transparency in the financial system. In recent years, the topic has surfaced again following a number of unfortunate issues that have accumulated since the financial crisis. For a long time we may have thought that this was primarily a problem that existed outside Denmark’s borders. But then cases emerged in Denmark too. There have been money...

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MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy

A team of economists at RBA in this paper explain their macro model MARTIN: This paper introduces MARTIN – the Reserve Bank of Australia’s (RBA) current model of the Australian economy. MARTIN is an economy-wide model used to produce forecasts and conduct counterfactual scenario analysis. In contrast to other large-scale models used at the RBA – and at many other central banks – which adhere to a narrow theoretical view of how the economy operates, MARTIN is a macroeconometric model that...

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History of GDP goes beyond the usual narrative

Jacob Assa in this paper says GDP is more of a political construct and symbol of power: Histories of Gross Domestic Product (GDP) – both critical and favorable – have become somewhat of a cottage-industry since the global financial crisis of 2008. Following the Stiglitz Commission, numerous general-audience books have appeared, describing the rise of GDP, analyzing its limitations, and offering reforms or alternatives. These histories, however, suffer from three key problems. First,...

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Rothschild emerges from the shadows for the Centenary of the London Gold Fixing

Ronan Manly has a must read post in Bullionstar. 2019 marks the 100 years of fixing of world gold prices!: This month in London marks the 100th anniversary of the first “London Gold Fixing”, the infamous daily meeting of a secretive cartel of bullion banks which has met since 1919 to set benchmark gold prices used throughout the international gold market, a meeting which continues to this day through its thinly disguised successor, the LBMA Gold Price auction. London gold price...

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How Do Private Digital Currencies Affect Government Policy?

Max Raskin, Fahad Saleh, and David Yermack in this paper show support for digital currencies: This paper provides a systematic evaluation of the different types of digital currencies. We express skepticism regarding centralized digital currencies and therefore focus our economic analysis on private digital currencies. Specifically, we highlight the potential for private digital currencies to improve welfare within an emerging market with a selfish government. In that setting, we...

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The Well-meaning Economist: Choosing an appropriate “mean” matters..

Adam Gorajek of RBA in this paper writes why choosing “mean” matters: Economists usually inform policymakers with conclusions that come from studying the conditional expectation, i.e. arithmetic mean, of some potential outcome. But there are other means to study, from the same ‘quasilinear’ family. And they can support very different conclusions. In trade research, for instance, studying other means can transform the perceived roles of colonial history, geography, and trade wars. In...

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