Archive for April 13th, 2012

Ignorance around Eurozone/euroarea crisis

April 13, 2012

I better be clear about a few European terms. EMU stands for Economic and Monetary Union. It isn’t European Monetary Union. Infact there apparently is nothing official called as European Monetary Union.

What we loosely call as EMU where 17 econs share a single currency Euro is basically euroarea which is not even a proper noun. It is based on the earlier dollar area, sterling area etc.

Richard Baldwin addresses a few such issues in this terrific post. He looks at the results of the Eurozone break up contest and says why all this ignorance is leading to some serious wrong prescriptions.

Analysing the shift from gold standard to inflation targeting central bank..using central bank balance sheet

April 13, 2012

An amazing post by  of Worth a lot Canadian Blog (As they dont change the name of the blog, I have done so; it isn’t just worthwhile).

We study all these different  monetary policy frameworks and shifts from one regime to other. We mostly have a pretty lame  understanding of these frameworks. Rowe translates all these via the central bank balance sheet.

Read the post for details.

 

Gauging corruption in a country via monitoring parking violations

April 13, 2012

This blog is a big fan of papers which use innovative ways to gauge some micro/macro issue.

This paper by Raymond Fisman and Edward Miguel use a similar way to track corruption in an econony.

NY City is place to large no. of diplomats. Before 2002, these diplomats could engage in parking violations, get tickets but were not really liable to pay penalties. A law after 2002 changed this. So, the authors look at these violations and analyse it with corruption in their home countries. They find that people who violate more happen to be from more corrupt countries!

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Importance of culture for development

April 13, 2012

A fab econ history paper by Nathan Nunn of Harvard.

He explores the role of culture in eco development. He says cultural beliefs help develop  institutions which in turn lays the foundations  for eco growth and development:

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