Archive for June 2nd, 2010

Would removing penny from Canada’s payment system have an impact on economy?

June 2, 2010

I came across this fascinating speech from  Pierre Duguay, Deputy Governor of the Bank of Canada.

The Canadian penny has a value of one cent and one hundred cents are required to make one Canadian dollar. There is a ongoing debate in Canada of abolishing the penny as its production is seen as costly compared to its worth.


Central Bank independence- lessons from BoE and Fed history

June 2, 2010

Michael Bordo writes a very timely paper on the topic. He revisits history of Bank of England and Fed to understand lessons on Central Bank Independence in this crisis.  Fed was a relatively more independent central bank to begin with. (more…)

Comparing Obama policies with Roosevelt’s New Deal

June 2, 2010

Christina Romer compares the policies of two presidents in this useful speech.


Assorted Links

June 2, 2010
  • PFM Blog points to Assessment Report of Public Financial Management systems in India
  • Bank of Canada raised its policy rate by 25 bps. So in developed economies, after Norway and Australia, we have Canada raising rates. Interestingly, all three depend on exports of natural resources/ commodities for their growth. Worthwhile Blog points to interesting choice of words in the statement
  • PSD Blog revisits industrial policy debate. The author says:

I am not arguing that there is no industrial policy going on; rather, my point is that I don’t see evidence of a big shift towards more industrial policy than was taking place before the crisis. More relevant is the point made in the note that concerns “that the crisis would produce a wave of nationalizations appear to have been unfounded.”

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