Archive for February 21st, 2011

How the recession impacted the museums?

February 21, 2011

Betty Joyce Nash of Richmond Fed has a nice write-up on the topic.

Museums are like public goods. Hence pricing them is a tricky business:

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What leads to economic recoveries?

February 21, 2011

Economists are full of advice and suggestions on what causes recessions. Little is known on what causes recoveries. Partly the reason is great moderations which fuelled a  false sense in many an econs that busts are over.

Richmond Fed has a short review of factors that lead to economic recoveries . There are following factors:

  • Monetary Policy – helped recover from most recessions as earlier recessions were brought by tight mon policy
  • Fiscal Policy – not much as mon policy was more helpful
  • Clean balance sheets – cleaner the better as recessions are increasingly becoming balance sheet driven. All three – households, corporate and government balance sheet matters
  • Confidence – very critical
  • Good shocks – like foreign investment, rise in immigration etc. Post 1990-91 recovery was weak. It required a shock from IT to push recovery (which then became bust soon)

Pst 1991 recession, recoveries have been slow and jobless. Why so?

Diagnosing the reasons behind the new shape of American recoveries — if, indeed, the last several recoveries represent a long-term change — remains a challenge for the economics discipline. Chicago’s Cochrane notes that it is an unsolved puzzle. “In the early 20th century, we had frequent deep recessions, but we bounced out of them quickly,” he says. “Now we seem to be bouncing out of them slower and slower.

Europe certainly got to a position in the 1970s and 1980s where it would get stuck without ever bouncing out, usually for various policy reasons. Maybe that’s what’s going on now in the United States, too. That would be depressing.” It surely would. On the other hand, anyone old enough to have survived the stagflation of the 1970s and the recessions of the early 1980s knows that thoughtful policy changes can bring a powerful recovery even in exceptionally tough times. Joe Palooka may be woozy, but the ring doctor hasn’t stopped the fight yet.

 

SPV for Management of Foodgrain Storage

February 21, 2011

GoI is just busy creating more and more layers of bureaucracy. Planning Commission created another evaluation office despite having one (criticised by Mint). Now is the turn of Ministry of Agriculture.

In a press release it says:

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