Wednesday , June 19 2019
Home / Tag Archives: Economics – macro, micro etc

Tag Archives: Economics – macro, micro etc

Economic Lessons from heavy crowding at Mt. Everest

Jim O’Neill in this piece applies ecomomic lens to the heavy overcrowding seen at Mt Everest this year: Beyond specific conditions such as the narrowness of the trail, Everest’s overcrowding problem is not so different from many other economic and social challenges that policymakers confront, namely an imbalance between supply and demand, and possibly poor regulation. One example, of special concern to me, is the market for antibiotics, which is failing because the development of new...

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Growing use of local currencies in Japanese trade with Asian countries

Takatoshi Ito, Satoshi Koibuchi, Kiyotaka Sato and Junko Shimizu in this research: Japan exports to neither advanced nor Asian countries in yen, as would be expected. Using questionnaire data, this column shows why Japanese exporters tend to choose destination currencies in their exports to advanced countries and why the US dollar, rather than the yen, is more often used in their exports to Asia. It also presents new evidence that the share of local currency has recently increased...

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Daniel Defoe, Cooperative Banks and challenges facing German economy..

Another fascinating speech by Jens Weidmann of Bundesbank. He points how Defoe once wrote about need to have savings/cooperative banks in England. But they took shape in Germany: Three hundred years ago, a book was published that has since gone down in history as one of the most printed publications of all time.[1] It tells the tale of the son of a Bremen merchant who went by the name of Kreutznaer. This young man embarks on a sea voyage, is enslaved, then escapes, then procures a...

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The procyclicality of banking: evidence from the euro area

Harry Huizinga and Luc Laeven research this hot issue of bank procylicality in Euro area: A high procyclicality of banks’ loan loss provisioning is undesirable from a financial stability perspective, as it implies that bank capitalisations are more negatively affected at the trough of the business cycle, exactly when capital market conditions for banks are at their weakest. This column finds that provisioning procyclicality in the euro area is about twice as high as in other countries....

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Skills of a Risk Manager in finance: C# / .NET full-stack Developer?

Interesting job vacancy at BIS: C# / .NET full-stack Developer, Risk Management Office location: Basel Department: Risk Management Unit: Service: Employment – Duration: 3 years Contract type: Fixed-term FTE%: 100% Application Deadline: 30/06/2019 Your contribution to our missionIn our role as a bank for central banks, we manage reserves for central banks and international financial institutions. We adopt a prudent approach to financial risk-taking, with risk management policies...

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How the State uses law to create value from nothing…

Katharina Pistor has a fascinating piece on financial history: If there ever was a magic ingredient for seemingly making something from nothing, it is law. Law can transform a simple commitment into an enforceable claim. And with a few additional legal steroids that grant asset holders priority, durability, convertibility and universality, law can turn a simple asset into a capital asset, as I explain in my new book The Code of Capital. Notes, currencies, bonds, asset-backed securities...

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Can MMT explain Israel’s growth story?

Tyler Cowen writes on Israel’s growth story: From about 1973 to 1985, Israel had very high rates of inflation at one point reaching over 400%. That was the result of excessively loose monetary policy. Over time, printing money at such a clip took in successively less government revenue, as Israelis adjusted to the inflation and worked around it by holding less cash and denominating their contracts in foreign currencies. The inflation stopped giving macroeconomic benefits, even for...

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Kenya’s own demonetisation experiment..

Well, Kenya is undergoing its own demonetisation experiment. However, there is more breathing space as the old 1000 shilling notes will be invalid as legal tender from October 1, 2019. The central bank Governor in a speech on 1-Jun-2019 announced two decisions. One it announced a new series of notes in following denominations: 50, 100, 200, 500 and 1000.  , Two, the old 1000 shilling note would not be legal tender: Your Excellency, the new banknotes will circulate alongside those...

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The impact of the Transcontinental Railroad on Native Americans

Nice interview of Dr. Manu Karuka, American Studies scholar and author of Empire’s Tracks: Indigenous Nations, Chinese Workers, and the Transcontinental Railroad, about the impact of the railroad on Indigenous peoples and nations. The author calls railways as an imperialism project across colonies: Your new book reinterprets the building of the railroad as a colonial project. Your book also challenges readers to consider the Transcontinental Railroad as a form of “continental...

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The Macroeconomics of the Greek Depression: Would devaluation have helped

Gabriel Chodorow-Reich, Loukas Karabarbounis, Rohan Kekre in this NBER paper analyse the Greek depression: The Greek economy experienced a boom until 2007, followed by a prolonged depression resulting in a 25 percent shortfall of GDP by 2016. Informed by a detailed analysis of macroeconomic patterns in Greece, we develop and estimate a rich dynamic general equilibrium model to assess quantitatively the sources of the boom and bust. Lower external demand for traded goods and...

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