Archive for April 27th, 2012

Milton Friedman’s memo to Indian Government in 1955

April 27, 2012

Came across this historical gem.

Friedman wrote a memo to Indian govt. in 1955:

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How Balance sheets of ECB, Fed and BoE have changed during the crisis?

April 27, 2012

This is an amazing note from Jean Pisani-Ferry and Guntram Wolff  of Bruegel. All central bank guys should be attempting to write something like this.

The note centres around how ECB’s LTRO has impacted/not impacted the Eurozone. But in the process, they explain the balance sheets of the three major central banks to help understand the diffeernces. What is even better is they have explained each item on the assets side of the balance sheet of all these three CBs.

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Indian economic crisis in 2012 resembles the economic crisis in 1989

April 27, 2012

We often compare Indian economy today to that in 1991 and say we are in a crisis. Though we have grown since 1991 but the main imbalances then -fiscal deficit and current account deficit- have once again become the main concerns   today.

Yes, we have GDP growth rates and higher forex reserves now which provide some comfort. Though forex reserves which also aren’t as much when seen as % of monthly imports. The monthly import cover stands at about 8 months  (Forex Reserves/Avg. Monthly Imports = 294/38 = 8 months or so). Moreover, this has been declining as forex reserves are declining and imports rising..

Ok..now here is someone who has seen it all from close quarters in both 1989 and 2012- Rahul Khullar, commerce secretary. In this candid interview, he says times are quite similar to the one in 1989:

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Writing Central Bank and Monetary History

April 27, 2012

A nice speech from Øyvind Eithrheim of Norges Bank. The speech is based on a workshop to discuss the Norges Bank’s Bicentenary Project. NB has sponsored a grand  project to understand monetary history. The project is aimed at celebrating the 200 years of the founding of the bank to be completed in 2016.

He says there will be 3 volumes from this project each with different purpose:

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