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Home / Tag Archives: Economics – macro, micro etc

Tag Archives: Economics – macro, micro etc

Ending shadow banking means ending modern central banking

Anantha Nageswaran in his GoldStandardSite blog quotes from this Prospect magazine article by Ann Pettifor. Ann argues how central banks have allowed shadow banking to proliferate. The vast “shadow banking” system, which has grown out of the same flawed monetary thinking, is another matter. Comprising pension funds, hedge funds, insurance companies and other investment vehicles, it now manages a $200 trillion stock of assets, dwarfing that $2 trillion cryptocurrency valuation, and also...

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Global reflation?

BIS Bulletin on rising inflation across countries: Inflation has risen in many countries. In conjunction with a rebound in GDP growth and evidence of significant bottlenecks in some sectors, this has prompted concerns that the low inflation era of recent decades could be nearing its end. A closer look at the data reveals that the pickup in inflation can be ascribed largely to base effects, increases in the prices of a small number of pandemic-affected items and higher energy prices. A...

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Moving from a poor economy to a rich one: The role of migrant job tasks

Prof Eran Yashiv of Tel Aviv University in this voxeu research shows what happens to a migrant moving from a poor economy to a rich economy: What are the gains for workers from moving from a poor economy to a rich one? This column examines this question using the case of Palestinian workers who could decide to either work in the (poorer) local economy or commute to work in (richer) Israel. It finds productivity gains experienced by the migrants are largely offset by the low returns for...

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How market design can help solve problem of water allocation

Nice article by Paul Milgrom and Silvia Console Battilana: Misallocation of scarce resources too often deprives users of them even as others waste their supply. Well-designed markets can overcome such problems by enabling voluntary transactions that allow existing users to retain their allotments while enabling higher-value uses. … Market design will also play a critical role in solving the problem of water allocation. Many of the world’s existing rights to fresh water – both surface...

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The turnaround story of Indian Overseas Bank

G Balachander of Hindu Business Line in this article explains the turnaround of IOB. In 2017, R Subramaniakumar and his team embarked on a massive turnaround programme, with a multi-pronged strategy under which it used INR surplus swap option, rebalanced its portfolio by significantly reducing exposure to large corporates, brought in huge HR focus, and perfected the IT systems. Many details in the article. This entry was posted on July...

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70 years of Central Bank of Sri Lanka: 1950-2020

Central Bank Sri Lanka (CBSL) completed its 70 years in 2020. CBSL released a special publication commemorating the 70 years. As of now the publication is available on sale. The central bank has put up volumes of earlier anniversaries on the website. The Central Bank of Sri Lanka (CBSL) has published a special publication on the history of currency used in Sri Lanka, titled “The 70 Year Journey of Currency Issue and Management” co-authored by Retired Director Communications of CBSL, Ms....

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The European Central Bank moves beyond price stability

My new piece in Moneycontrol on the changes in ECB’s policy as announced in its strategy review. This entry was posted on July 19, 2021 at 4:05 pm and is filed under Academic research & research papers, Central Banks / Monetary Policy, Economics - macro, micro etc, Financial Markets/ Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site....

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Financial Dollarization in Emerging Markets: Efficient Risk Sharing or Prescription for Disaster?

Lawrence Christiano, Hüsnü Dalgic & Armen Nurbekyan in this NBER paper: This paper pushes back against two views about the effects of dollarization. First, there is a view that the dollar is a device by which rich countries provide business cycle insurance to emerging market (EME) countries. We find that the dollar is important for risk sharing, but the evidence suggests that it is primarily a device to shift business cycle risk across different people within individual EMEs and...

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A European and Rawlsian view on inequality, inclusive growth and monetary policy

Olli Rehn, Governor of the Bank of Finland, in this speech quotes Rawls to justify low for long interest rate policy of central banks: In the euro area, national policies determine labour market outcomes. However, monetary policy can support full employment without prejudice to price stability. In the presence of a flattened Phillips curve, policies aiming at full employment are likely to have a moderate inflationary impact in the short term. Under such circumstances, monetary policy can...

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Nomo: World’s first Islamic international digital bank

Kuwait’s Boubyan Bank has started Nomo, which is world’s first islamic international digital bank. The bank will enable savers and investors to invest in UK. Boubyan Bank Group today announces the launch of Nomo, a fully licensed and regulated UK Islamic digital bank catering for customers with a global financial outlook. Nomo has launched as a brand name of the UK-based Bank of London and The Middle East (BLME), in which Boubyan Bank is a majority shareholder. Nomo has been developed...

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