Archive for October 26th, 2010

Australian dollar appreciation to hit Ashes series in Australia

October 26, 2010

Here is the news release.

The last time England’s ‘Barmy Army’ came to Australia for an Ashes series they mocked the locals by singing: “We’re fat, we’re round, three dollars to the pound.” But that’s unlikely to be the case during this year’s Ashes series as the global financial crisis and the soaring Aussie dollar have  dramatically cut the number of English tourists travelling to Australia to support their team, reports said Sunday.

Around 37,000 British fans travelled to Australia to watch a 5-0 drubbing in the last Ashes series here four years ago.For fans making the journey this time the cost in exchange-rate terms will be more than 50 percent higher. Cricket Australia said that thousands of tickets reserved for tourists might be reallocated to locals as it becomes apparent numbers will be well down on those who visited during the 2006-07 Ashes.

“We will be doing a review in mid-November and it is possible that some of the tickets allocated to inbound tourism that are returned to Cricket Australia are put back onto the market to become available to the Australian public,” CA spokesman Peter Young told the Sun-Herald. “If that happens, there could be a few more tickets available to venues that are currently sold out of general admission tickets.”

How economics affects Cricket…This will be sad though. The upcoming Ashes series is a much anticpated event. Without Barmy Army it would not be as much fun..

Money financed fiscal stimulus – the most powerful policy at zero level bound

October 26, 2010

I mam trying to read the papers presented at this Boston Fed conference – Revisting Monetary Policy in Low Inflation Environment.

I was reading this Laurence Meyer paper where he looks at Fed policy in this crisis and their impact.

First how much did Fed’s purchases of assets (QE) impact US Treasury? He says a Fed program of USD 400 bn lowered 10 yera treasury by 13 bps. There are 3 more studies in the estimate of 13-14 bps. As all similar, he says they must be true!!

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Probability of sustained deflation in US is just 5.3%

October 26, 2010

Jens Christensen of Federal Reserve Bank of San Francisco writes a timely paper on one of the several burning issues.

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Kaufman economics bloggers’ survey shows economic outlook steadily declining

October 26, 2010

Kaufman’s leading economics bloggers survey for Q4 2010 has been released (pdf here).  (Must admit upfront that this blog is part of the survey. So there would be some biases for the survey :-))

The key findings are:

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In Venezuela they call market price as capitalist price

October 26, 2010

I was so tempted to blog after reading this blogpost on Prof Mankiw’s blog. He gets an email from someone in Venezuela:

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