Archive for April 30th, 2010

Money Multiplier in India

April 30, 2010

RBI releases a lot of data on monetary aggregates on a weekly basis. Though, analysing monetary data is not in fashion anymore, it does throw long term trends. Take the case of money multiplier (MM).  It is a common measure mentioned in most text books. When it comes to practice or seeing research on monetary policy, you hardly find a mention. With this crisis we expect renewed focus on monetary variables etc. So, I thought to describe it a bit.

(more…)

More interesting stuff to read

April 30, 2010

There is a deluge of interesting stuff to read:

(more…)

Understanding the Goldman Abacus issue

April 30, 2010

I have not been able to understand it. The moment I read Goldman structured a deal called Abacus which invested in synthetic CDOs, it was enough to hide for cover. It sounded so similar to Enron which gave fancy names to all its shady investments.

Knowledge @ Wharton issue has a nice primer on the issue. First what is this synthetic CDO??

(more…)

Finally, Fed may get a full board

April 30, 2010

I don’t recall which paper, but some economist pointed how Fed’s board has not been fully occupied for a while. Fed Board has seven governors (including chairman and vice chairman) but we have had only 5-6 governors for a while. Even now, there are just five members. At this stage Fed needs more hands and not less.

Now Obama has nominated 3 board members and has sent the list to Senate for confirmation. WSJ Blog has better explanation:

(more…)


%d bloggers like this: