Archive for March, 2011

Blame IMF Governance for the global imbalances

March 22, 2011

Franklin Allen and JooYun Hong of Univ of Penn write this paper on the topic.

They pick the case of South Korea which has increased its reserves and is part of the surplus side (albeit a small one) of global imbalances debate. In 1997 crisis SK was badly hurst and had to goto IMF. IMF imposed tough austerity measures for bailout money leading to worsening of the crisis. This led Koreans (and others) to ensure they never goto IMF in future. Hence this rise for foreign reserves and savings. More importantly, authors criticise that IMF voting is cornered by developed economies leading to partial behavior toward developing economies. Hence, if we have global imbalances now, partly the fault lies with IMF and its governance structure.

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NY Fed Blogging!

March 22, 2011

New York Fed has started its blog- Liberty Street Economics Blog. NY Fed is called by many as the most powerful financial entity in the world. The blog would be mainly about explaining and linking recent research by NY Fed econs.

The welcome post says:

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Sustainable Cities: Oxymoron or the Shape of the Future

March 21, 2011

A new paper looks at eight new cities coming up around the world.

These are based on a concept floated by World Bank called ecocities:

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Luck versus skill in finance: How can you tell?

March 21, 2011

Aswath Damodaran has a superb post  on the same.

He looks at one of the perennial qs in finance – Do fund managers have skill or luck? How does one separate the two? He then looks at why separating is easier in sports than finance. Then gives his own list of things he would look to determine a skillful manager/investor:

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150 years of innovations in monetary control

March 21, 2011

BoJ Governor looks at  150 Years of Innovations and  Challenges in Monetary Control.

He mentions four innovations:

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Carnivorous lions and herbivorous Asians: how the recession has made a case for leadership in Asia

March 18, 2011

THis is the title of this speech by by Tan Sri Andrew Sheng, a leading policymaker and thinker from Hong Kong.

He first lists various causes of the crisis and many blames the US financial industry and its distorted incentives. On Bernanke’s global imbalances debate he says:

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Interest rate spreads on loans are very good predictors of loan default risk…

March 18, 2011

Here is an interesting interview of one of the leading U.S. banking scholar.

He talks about evrything from Great Depression to the current crisis and the policies after the crisis:

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How public perceives corruption? Case of Sweden

March 18, 2011

This paper from Jonas Linde & Gissur Ó Erlingsson is an absolute surprise.

Sweden is a country which is ranked tops in governance and corruption rankings, meaning relatively a clean country. Infact by some measures the cleanest country by some measures.

This paper says reality is different. There have been some recent cases of corruption in Sweden. THis has led to a larger % of people believing that Sweden is corrupt and public officials work for their own gains. Moreover, you need to know them to get your work done….

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Reading Milton Friedman in Dublin

March 17, 2011

Henry Farrell of George Washington University has this superb article on woes of Ireland (read it with Michael Lewis’s version of Ireland crisis and you get some shocking picture of once called Celtic Tiger).

Farrel is an Irish and was shocked to see the growth of Ireland in 1990s:

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Rules and Regulations: How the Details Take Shape

March 17, 2011

Cleveland Fed’s Forefront magazine has a nice discussion on the topic. It takes you through this journey of how a law becomes a regulation:

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3 I’s of agriculture growth – Investments, institutions, incentives

March 17, 2011

Ashok Gulati who was earlier at IFPRI is one of the eminent agriculture economists and thinkers on the subject. He has just been made chief of Commission for Agricultural Costs and Prices, a position which could have been given earlier. May be we could have more reforms and action on agriculture front.

He gives a superb interview in Financial Express:

How do we deal with the agriculture crisis?

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The Arab Democracy Paradox

March 17, 2011

Mwangi S. Kimenyi of Brookings has this interesting take on the crisis in Arab world.

He says the uprising was not because of poor economics/development failure. Infact these regions have shown decent performance in human development.

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Economists Debate: What were the causes of the 2007 crisis?

March 16, 2011

This is the title of my new paper. In this I discuss the main causes of crisis discussed and debated by economists..

Comments/suggestions are welcome..

How Raghuram Rajan became an economist?

March 16, 2011

In this piece Raghuram Rajan recalls the events which made him become an economist:

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What helps in case of income shocks? Family or Government

March 16, 2011

FRBSF econs (Kenneth Couch, Mary Daly, and Colin Gardiner) have a superb short paper on the topic.

Say, a person gets an income shock in form of job loss etc. What are his sources of income? Does government support him? Or is it that family members gear up and fill the shortfall?

As per the team, family members help make up for the income shortfall. They look at three such shocks:

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40 Best iPad Apps for Your Personal Finances

March 16, 2011

Liz Nutt of Accountingdegree.com sends me this link which lists 40 iPad Apps for managing personal finances.

Might be useful for iPad owners…

India’s FinMin questioned over LIC’s food coupon scheme

March 16, 2011

This is an interesting Press Release from PIB.

LIC has started giving its employees Sodexo food coupons as an incentive. It seems from the press release that some members of Rajya Sabna raised questions (on 15 Mar 20110 over whether this was a scam as well , criteria for selection etc.

Minister of State for Finance, Mr Namo Narain Meena clarified there is no scam:

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Polish Constitution amendments before adopting the euro

March 15, 2011

ECB was asked for its opinion on a draft law which will amend the constitution of the Republic of Poland.

The draft law looks to propose amendments in the Polish constitution which will help it implement Euro as its currency.

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International policy cooperation and prisoner’s game

March 15, 2011

Dominique Strauss-Kahn, MD of IMF in this speech points to this nice linkage.

He says international policy cooperation was there as crisis started but has waned as recoveries have been different:

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Human cost of delayed economic reforms in India

March 15, 2011

I think many must have seen this paper. Those who have not should.

Swaminathan S. Anklesaria Aiyar writes this interesting paper which estimates the human losses because of delayed reform in India. He says if India had started its reforms earlier it would have had lower infant mortality rate, high literacy, lower poverty etc.

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