Archive for December 14th, 2011

Re-examining the causes of the Great Depression .- the Joseph Stiglitz version

December 14, 2011

Joseph Stiglitz takes us back to the most discussed event of macroeconomics – Great Depression.

He says we are drawing wrong lessons from Great Depression. Our analysis of its causes and what should be done in this crisis are wrong. He says the lessons that financial crisis caused great depression and hence we should save banks at whatever cost is plain wrong.


India’s food inflation: Is this time different?

December 14, 2011

A superb speech from Subir Gokarn of RBI. Though this issue of food inflation has been analysed to the pulp, there is always scope for more juice.

In this speech he shows how India has suffered from high food inflation for most periods since 1950s. The food inflation eased in 1990s fueling complacency and again rose in 2000s. The drivers  of food inflation have changed from cereals to protein and fruits & veggies now. So, though we may say this time is different, reality is it is not. Food inflation has been a result of sluggish supplies which have not kept pace with rising demand and population. So, may be the players/drivers of food inflation have changed the overall issue of high food inflation remains. Much like the case we see for financial crisis as shown by Rogoff-Reinhart.


IDBI Bank crosses 1 LAKH facebook fans…

December 14, 2011

I was surprised to receive this email from IDBI Bank which said it has reached 1oo,000 fans on its facebook page.

The message says (with the background of its elephant ad picture):

We thank you all for your support IDBI Bank now has 100000 facebook fans…and growing….

Add a special touch to our celebrations

Check out our Facebook page now

  • Know more about our products
  • Get info about the financial sector
  • Participate in exciting quiizzes and contests to win exclusive merchandise

Like us on Facebook and become a Fan now..

All I could do is smile.

Banks  now seem to be looking not just increasing its branch customers but also its facebook fans.. And that too coming from a public sector bank is like a real welcome surprise..

How banks like IDBI are using social networks to brand themselves is interesting to see. What could be more interesting is to understand the bank’s  facebook fans. Are they bank’s customers or have just clicked on Like IDBI facebook page as normal surfers?  This is important as brand connection will be higher for bank’s customers against casual surfers. Do people connect with IDBI Bank brand via its facebook page and vice-versa? Does facebook change the image of a public sector bank and is seen as a savvy, young-generation bank?


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