Archive for January 27th, 2012

Reviewing role of monetary policy in the 2007 crisi

January 27, 2012

Here is a superb speech from Jean-Pierre Danthine of Swiss National Bank.

He points to three theories which have targeted monetary policy for the crisis for different reasons. All these say concepts of inflation targeting were misapplied:

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Fed’s low interest rate policy to remain till low 2014

January 27, 2012

On reading FMOC  statement for Fed’ monetary policy held on 25-Jan-12, I was stumped. It said zero policy rates to remain till end-2014. It got sharp reactions when it was extended to mid-2012 in Sep-11 policy. Now zero policy rates have been extended further by 18 months to end-2014. Looking at economic projections, they are better than Nov-11 projections. And then recent data has been much better than anyone expected including Fed.

TGS Blog does a superb analysis and criticism of the recent Fed move. I just don’t need to  say anything more…

A guide to RBI’s weekly statistical supplement

January 27, 2012

This has taken a long long time. Each time I decided to do something on RBI’s weekly stats supplement (WSS),  I got lost.

Finally, I have managed to understand some portions of it and have put them in this paper. This analysis will be in two parts. In the first part I have looked at WSS tables related to RBI’s monetary operations. There are three main tables I look at:

  • Table 1: RBI’s balance sheet
  • Table 2: Forex reserves
  • Table 8: Reserve Money

The other tables  are related to banks and financial intermediaries and will be covered in a future report.

I hope this helps the visitors understand a bit about RBI’s operations and ofcourse the WSS..

Opposing liberalization in retail – Italy vs India

January 27, 2012

Gulzar points to this interesting comparison. It seems there has been opposition in Italy as well over liberalization of  retail market. India opposed FDI in retail and  Italy opposed  more flexible hours in opening/closing of retail shops!!

However in India it may have some justification, in Italy it just seems to be anti-competitive.

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