Archive for February 2nd, 2011

Can RBI predict World Cup cricket winner?

February 2, 2011

Alan Bollard, Governor of RBNZ in this speech says:


Saying goodbye to 25 paise and below coins

February 2, 2011

Govt. announced to withdraw 25 paise and below coins from the market from June 30, 2011 onwards.

In a follow up, RBI announced that banks have been instructed to arrange exchange of these coins for face value at their branches.

Well, people had given up using these coins long back. Barring Mumbai, I have not seen any other city using these or taking 25 paise coins for transactions. Infact, even 1 Rupee coins are difficult to find in most places. So one either gave up that change or had to accept toffees/some other 1 Rupeee item in exchange.

We will just see these coins in museums from Jul 1, 2011 onwards.

Indian Economy – Fortnightly Update

February 2, 2011

The recent update is here.

It is amazing how a new base for WPI helps. Inflation comes lower, IIP is revised upwards and so is GDP. Read the update for further details.

How economics/GaryBecker can save marriages…

February 2, 2011

Economists may not be valuable in saving economies from going into a tailspin. But their advice seems to be working in unlikely of places like marriage.

Paula Szuchman of Newsweek writes how Gary Becker helped in saving her marriage (HT: Prof Mankiw’s Blog).

After numerous fights and arguments she called up Gary Becker and Becker told her:


India in Twin Deficit Club – Implications and Issues

February 2, 2011

This is the title of my new paper. Comments/criticisms welcome.

Have an idea that will create jobs but not cost money?

February 2, 2011

Hamilton Project at Brookings has announced a cash prize worth USD 25,000 for a proposal that can create jobs and enhance productivity (HT: Rodrik who says dont say cut red tape as that is going to be a common answer).


US economists advocate capital controls

February 2, 2011

Well, well, well…..

After the IMF twist in the tale, number of US econs have written an open letter (HT: WSJ Blog) to US government to include capital controls as a policy tool.


IPL nudging!

February 2, 2011

The latest IPL player auctions generated huge media response and discussions. As the teams did not pick former India captain- Saurav Ganguly, it was only a given that it would be a major news item going forward. Since the Jan-11 auction, we keep getting newsbytes on teams approaching Ganguly, taking him as a mentor, fresh auction etc.

Latest is that Board of Control for Cricket in India (BCCI) had sought teams’ views on allowing a team to buy one of the Indian players left unsold in the January auction. There are three unsold players: Saurav Ganguly, Wasim Jaffer and VRV Singh. The IPL rules say players not picked in auction can only be chosen as replacement players. So IPL wrote to teamowners seeking asking if the rules could be tweaked and unsold players bought at their reserve price.

HT reported that IPL chief operating officer, Sundar Raman, mailed all the 10 team owners. His last words are an interesting application of default strategy:

I would be grateful if you would respond by the close of play on 3 February. If we do not hear from you we will assume that you are OK with the request.

🙂 So if team owners do not respond, the default is they are ok with the request. Default could have been they are not ok with the request as well. So one has to opt-out if not agreeable to the proposal. Has BCCI/IPL Body been reading nudge as well? 

To add on to the story, some teams have objected so chances of these players getting bought are remote as of now.

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