Tuesday , March 2 2021
Home / Tag Archives: Economics – macro, micro etc

Tag Archives: Economics – macro, micro etc

History of Money: From cowries to cryptocurrencies (Three Part Series)

Here is my attempt to write history of money in three part series on Moneycontrol. The first two parts are out: History of Money (Part I) | From cowries to cryptocurrency History of Money (Part II) | Currencies, banking and crises Part – III to be released on 4th Mar 2021. This entry was posted on March 1, 2021 at 4:22 pm and is filed under Academic research & research papers, Central Banks / Monetary Policy, Economics - macro,...

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How (Not) to Fight Monopolies: Lessons from India’s Licence Raj

Prof Mircea Raianu of University of Maryland, College Park in this THeIndiaForum article: RK Hazari’s landmark work on corporates in 1960s India holds lessons for contemporary questions on promoting small and medium firms and ensuring effective corporate governance. These questions are all the more crucial in times of rising income inequality. This entry was posted on March 1, 2021 at 2:13 pm and is filed under Academic...

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Which indicator tracks Indian Banking Sector best? Price-Book Ratio?

Bhanu Pratap, Ranajoy Guha Neogi and Jibin Jose of RBI in RBI’s Feb-21 Monthly Bulletin: What is an appropriate measure of bank value? This article argues that price-to-book ratio (PBR) of banks may be considered as an alternative measure of bank value to better understand their health and stability in the Indian context. While there are several indicators such as capital adequacy ratios, Z-scores, and profitability, none of them comprehensively capture the viability of the underlying...

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Funding and reserving Canterbury earthquake insurance claims

Rober Cole of RBNZ in this research note: The 2010-11 Canterbury earthquakes are by far the most costly insurance event in New Zealand’s history with estimated property insurance claims costs of around $38 billion, and remain one of the most significant globally. The Funding and reserving Canterbury earthquake insurance claims Analytical Note provides a hindsight review of the funding and reserving of Canterbury earthquake claims after 10 years. There are valuable lessons for insurers...

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Reviewing RBI’s Monetary Policy Framework

RBI has revived the Report on Currency and Finance which was last published in 2014. RCF was theme based report. The theme for 2020-21 edition is reviewing RBI’s Monetary Policy Framework. The report says RBI should continue with the current target of 4% (band of +/-2%): In the international experience, inflation targeting emerging market economies (EMEs) have generally lowered their inflation targets and narrowed tolerance bands. During the period under review, headline CPI inflation...

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Which inflation model to follow? Friedman or Phillips?

Manoj Pradhan and Charles Goodhart in this voxeu research: Milton Friedman and Bill Phillips most likely assumed that their separate methods for predicting inflation would lead to much the same outcomes. Recently, however, monetary aggregates and the Phillips curve have provided extremely disparate signals. This column discusses recent economic developments leading to these disparate signals, concluding that inflation will most likely end up somewhere between the predictions of the two...

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What does research say about the effects of central bank balance sheet policies?

Paola Di Casola of Riskbank in this research: In a time when traditional monetary policy tools such as the policy rate is approaching the possible lower bound, central banks in many parts of the world had to expand their toolboxes. An increasing number of them have therefore taken measures that have caused their balance sheets to increase. For instance, in November in Sweden the Riksbank decided to purchase securities for up to SEK 700 billion, to counteract the effects of the...

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The (de-)central question: Subnational governments and the making of development in Africa

Yohan Iddawela, Neil Lee and Andrés Rodríguez-Pose in this voxeu piece: Differences in the quality of local and regional governments and their implications for development have attracted considerable attention, especially in Europe and Asia. In Africa, the recent drive towards decentralisation has, however, neglected how variations in the quality of sub-national governments affect development prospects. This column addresses this gap in knowledge by measuring variations in subnational...

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How to issue a central bank digital currency

David Chaum, Christian Grothoff, Thomas Moser of Swiss National Bank in this paper: With the emergence of Bitcoin and recently proposed stablecoins from BigTechs, such as Diem (formerly Libra), central banks face growing competition from private actors offering their own digital alternative to physical cash. We do not address the normative question whether a central bank should issue a central bank digital currency (CBDC) or not. Instead, we contribute to the current research debate by...

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Supervisory practices regarding financial institutions affected by Texas Winter Storms

US Federal and state financial regulatory agencies have issued an interagency statement: The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators, collectively the agencies, recognize the serious impact of Texas Winter Storms on the customers and operations of many financial institutions and will provide appropriate regulatory...

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