Archive for August 1st, 2012

Governance in Mumbai Metropolitan Region…

August 1, 2012

A superb highly readable paper by Abhay Pethe, Sahil Gandhi, and Vaidehi Tandel.

Such papers make this whole reading on governance and connect with ground reality pretty well. It first looks at governance in metropolitan region and argues why there is a need for polycentric governance in metro urban regions. Then it looks at the experience of governance in Mumbai from this polycentric perspective given by late Ostrom couple:

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International flow of funds during Risk-on/ Risk-off games

August 1, 2012

Robert McCauley of BIS has this terrific paper on the topic.

The markets keep moving fluidly from risk-on to risk-off (called RO/RO by some). Risk on is when the investors start buying riskier assets like equity, as a result bond prices start declining. Risk-off is the reverse when riskier assets are shunned and markets pile on lesser risky assets like bonds (bonds are not risk-free anymore, hence less risky).

McCauley helps understand this in a much more macro setting. He helps explain the flow of funds between international investors and central banks of developed and emerging economies. How funds flow from the investors to these central banks in RO/RO situations is quite a read:

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LIBOR crisis in 14th century!

August 1, 2012

In case you thought this is just a 2007 crisis issue, think again.

Adrian Bell, Chris Brooks and Tony Moore of University of Reading have been working on a project called Medieval Foreign Exchange.

In this article they discuss some findings and show how a variant of LIBOR crisis occurred in 14th century:

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