Archive for April 13th, 2010

Blinder reviews what central banks should and should not do

April 13, 2010

In his new paper, Alan Blinder explores what should a central bank do and not do? The paper is written on Fed but lessons can be taken for all. 

About six years ago, I published a small book entitled The Quiet Revolution (Blinder 2004). Though its subtitle was “Central Banking Goes Modern,” I never imagined the half of it. Since March 2008, the Federal Reserve has gone post-modern with a bewildering variety of unprecedented actions that have either changed the nature and scope of the central bank’s role or stretched it beyond the breaking point, depending on your point of view. And that leads straight to the central question of this essay: What should–and shouldn’t–the Federal Reserve do?

He says there are four traditional roles of central bank:

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Myth of Eternal and Predicatable Alpha in Indian Mutual Funds

April 13, 2010

It has been a while since I posted on mutual funds. Benchmark Mutual Funds, is an India based MF which focuses on index/passive funds.

It has released two research pieces (HT: Ajay Shah Blog). In first (titled – Myth of Eternal Alpha) it looks at whether active mutual funds can always beat the markets? In second (titled- Myth of Predictable Alpha), it looks at whether we can pick up mutual funds based on past performance? In both cases the answer is ‘no’.

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Recession over? NBER says not yet….

April 13, 2010

Jeff Frankel NBER Recession dating committee member declared in his blog that recession is over in US on 5 Apr 2010. As expected, there was a huge build up that NBER would soon declare recession is over. Robert Hall, Chairman of the committee also declared recession is over in this interview on the same day.

However, NBER in its recent statement said not yet. It is early days still:

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