I came across this fascinating paper from Norges Bank economists on factors affecting policymakers seeking advice.
Archive for May 20th, 2010
RBI published a very useful staff study on the subject of international currencies. It is written by Rajiv Ranjan and Anand Prakash, economists at RBI. It is pretty short one also.
One major topic of reform is international monetary system. Within international monetary system, an important question is which currency should be used for international transactions? US Dollar rules the international transactions space for many years now but this crisis has shown the need to have an alternate currency. The study looks at whether Renminbi and Indian Rupee can serve as alternatives. More importantly it looks at all the economics of international currency.
Rubén Hernández-Murillo,and Christopher Martinek of St Louis Fed have a superb short note on the topic. They say US economy and employment has shifted from low skill to high skill.
Between January 1990 and January 2010, for example, employment in iron and steel mills manufacturing declined by about 57 percent, while employment in textiles and apparel manufacturing declined by about 50 percent and 82 percent, respectively. In contrast, over the same period, employment in professional and business services increased by 53 percent, education and health services by 80 percent, and leisure and hospitality services by 40 percent.
But we do not see same trends across cities.