Archive for September 30th, 2008

Another research paper goes international

September 30, 2008

I had pointed earlier that my research on financial inclusion has been mentioned as a reading list in OECD’s financial education web-portal in India reference list.

I came across this ADB paper where my paper on financial education has been included in the reference list as well. (See last page (no 8) of the paper under other publications).

ICICI gets a confidence boost from RBI

September 30, 2008

I had pointed to increasing concerns from the financial channel of the coupling theory. This is just becoming a nightmare for all the authorities. There was a biog concern on ICICI Bank today and the share price was sliding.

RBI had to issue a statement to calm market fears about the company:

There are reports in some sections of the media that based on rumours regarding the financial strength of ICICI Bank, depositors are withdrawing cash at its ATMs and branches in some locations.

It is clarified that the ICICI Bank has sufficient liquidity, including in its current account with the Reserve Bank of India, to meet the requirements of its depositors. The Reserve Bank of India is monitoring the developments and has arranged to provide adequate cash to ICICI Bank to meet the demands of its customers at its branches/ ATMs.

The ICICI Bank and its subsidiary banks abroad are well capitalised 

This is actually becoming a nightmare. Irrational exuberance first drives the prices to stratospheric levels across economies and then same irratinal pessimism lead to dramatic correction across economies. What do you do as a policymaker? If you want to intervene during “the rising”, the participants say such intervention is not needed, it is against free markets, markets find their own levels etc. However, in times of “the fall”, the same logic is defied and interventions are demanded.

Assorted Links

September 30, 2008

1. US Congress has not passsed TARP. MR reflects, WSJ Blog views. Krugman says US is banana republic. Mankiw points to plan B

2. ASB says ICICI ADR managed to hold yday

3. IDB on US bailouts

4. IEB has a superb post on all the ongoing mess

5. CMB says let Wall Street drown alone

6. A new blog from Peterson Institute. Rodrik points to Growth Commission BLog

7. Mankiw points to more comments on the crisis. FCB also points to the same

8. Fin Prof  points to NY TImes’ interacrive feature explaining the crisis

9. Econbrowser points Detroit gets a bailout

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