Monday , November 11 2019
Home / Tag Archives: Financial Markets/ Finance

Tag Archives: Financial Markets/ Finance

The End of Neoliberalism and the Rebirth of History

Joseph Stiglitz in Proj Syndicate: For 40 years, elites in rich and poor countries alike promised that neoliberal policies would lead to faster economic growth, and that the benefits would trickle down so that everyone, including the poorest, would be better off. Now that the evidence is in, is it any wonder that trust in elites and confidence in democracy have plummeted? Neoliberal was hardly liberal and was actually intolerant to other views, The biggest victim was macroeconomics: The...

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The impact of negative interest rates on banks and firms

I had blogged about impact of negative interest rates on pension markets. Carlo Altavilla, Lorenzo Burlon, Mariassunta Giannetti and Sarah Holton write about impact of negative interest rates (NIRP) on banks and firms: Economists and policymakers continue to question the effectiveness of monetary policy when an economy faces near-zero or sub-zero interest rates. Sceptics argue that central banks cannot stimulate lending, and may indeed decrease the loan supply, by setting negative...

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The Road to Serfdom at 75: When central bankers reflect on lessons from Hayek

Yale Univ recently organised a conference on the 75 years of Hayek’s book : Road to serfdom. I had pointed to a fascinating paper on the Book’s 75 years earlier. One of the speakers in the Yale event was Randall Quarles, Vice chair of Federal Reserve. In his speech he reflects on lessons from Hayek: The financial crisis, and the deep recession that followed it, prompted changes in the United States’ regulatory framework. These changes have been designed to make the financial system more...

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From Greenspan standard to Draghi standard

My new piece in moneycontrol (behind paywall), reflecting on tenure of Maro Draghi. I argue how we have moved from Greenspan standard to perhaps a Draghi standard. In the famous 2005 Jackson Hole conference, Alan Blinder and Ricardo Reis summarised the (Alan) Greenspan standard as 11 principles: Keep your options open Don’t let yourself get trapped in doctrinal straitackets Avoid policy reversals Forecasts and models though necessary are unreliable Act preemptively when you can Risk...

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Why Modern Money Theory needs to be taken seriously

Ajit Ranade had earlier written an article in Mint on MMT. Prof Sashi Sivramkrishna writtes a rebuttal piece arguing why we need to take MMT seriously: In just four minutes of reading time, Ajit Ranade’s opinion piece, The Inexplicable Allure Of Modern Monetary Theory, published in Mint on 21 October, attempts to bring down Modern Money Theory (MMT), a school of thought that presents a cogent alternative to the mainstream neoliberal macroeconomic discourse by fundamentally reassessing...

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Why Rich Cities Rebel?

Santiago, the richest city of Chile and Latin America recently erupted in protests. Andres Velasco look at the reasons behind the protests: Why are millions of Chileans still marching in protest, ten days after the violence erupted? For starters, Chile is not alone. In the last decade, places as diverse as Great Britain, Brazil, France, Hong Kong, and Ecuador have experienced similar episodes. Whatever the immediate local trigger, the scope, intensity, and often the violence of the...

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History of Deposit insurance in India: The insurance coverage needs to be raised

My piece in moneycontrol.com tracing history of Deposit Insurance in India. It’s much easier to define financial or banking instability than stability. A strong pointer of banking instability is whether deposit insurance is becoming part of the public narrative. If so, it means people are worried about safety of their deposits. The PMC (Punjab and Maharashtra Co-operative) Bank case and a string of banking frauds have highlighted the matter like never before. The worries are taking hold...

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From Bigtech, Fintech to Suptech: Use of technology to support supervision

Stefan Hohl, Arend Kulenkampff and Jermy Prenio in this BIS Insight: Suptech initiatives have gained momentum but it remains unclear exactly what falls within its scope. The term is defined by Broeders and Prenio (2018) as the use of innovative technology by supervisory agencies to support supervision. Since that publication, an increasing number of supervisory authorities are beginning to explore suptech applications in different areas of supervision. In addition, other non-supervisory...

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Machine learning in UK financial services

I recently wrote a piece on Machine learning and its impact on economics and finance. New BoE publication reviews what is happening in fin services industry in England. It finds ML is being used increasingly by the fin firms: The Bank of England (BoE) and Financial Conduct Authority (FCA) have a keen interest in the way that ML is being deployed by financial institutions. That is why we conducted a joint survey in 2019 to better understand the current use of ML in UK financial services....

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Video Clips of Economists Explaining for Intro Econ Classes

Superb Timothy Taylor on his super blog links to these intro econ videos: I know a number of economics faculty who have been incorporating video clips into their classes. Sometimes it’s part of a lecture presentation. Sometimes it’s for students to watch before class. For intro students in particular, it can be a useful practice because it gives them a sense that they are being introduced to a universe of economists, not just to one professor and a textbook. The faculty member can also...

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