Friedman wrote a memo to Indian govt. in 1955:
Archive for April 27th, 2012
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.
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:
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: