Archive for May 11th, 2011

Will cash replace cards?

May 11, 2011

One usually assumes speeches to start like will cards replace cash not the other way round.  

Lars Nyberg of Riksbank argues the opposite and says cash will remain in the system despite rise in digitial transactions. The cash usage would decline but is far from being extinct which will never happen.

He draws nice parallel with theory of evolution :  (more…)

Policy Discipline and Spillovers in an Inter-connected Global Economy

May 11, 2011

Another very good speech from RBI Governor Subbarao on the topic. The way he explains the global linkages and its spillovers and policy options ahead marks for a superb reading.

He says we need to understand this linkages thing much better. It is not about trade linkages any more. We have finance, confidence and global supply chains linkages as well:

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How Sloan and Russell Sage Foundations helped fund research in Behavioral Economics

May 11, 2011

Floris Heukelom  writes a nice paper on the topic. How behavioral economics program was kind of kickstarted and supported by these two foundations is like a superb case (and victory) on how institutional support can deliver great results.

Behavioral economics did not really gain momentum despite Herbert Simon being acknowledged by Nobel Committee in 1978 for his work on bounded rationality. Tversky and Kahneman wrote their landmark Prospect Theory paper a year later in 1979 but was hardly noted. The paper talks how these two foundations supported, funded and propelled the behavioral economics program. Much of the credit for behavioral economics goes to these two forums apart from the brilliant economists who have contributed to the field. It was like  a mission:

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