Archive for January 18th, 2013

Financial liberalization in the Nordic countries in 1980s..

January 18, 2013

Nice paper by Seppo Honkapohja of Bank of Finalnd. Explains how and why Nordics did financial liberalisation and how it led to a crisis later on:

The financial liberalization in the four Nordic countries (Denmark, Finland, Norway, and Sweden) that took place mostly in the 1980s led to a major financial crisis in three of those countries. The crises in Finland, Norway, and Sweden are among the deepest financial crises in advanced market economies since World War II. Denmark experienced some banking problems but managed to avoid a systemic crisis. This paper reviews the process of liberalization and discusses the reasons why Finland, Norway, and Sweden drifted into financial and economic crises.

The particular coverage on how liberalisation was sequenced is interesting read..

Promoting Retail Investor Participation in India’s Government Bonds ..

January 18, 2013

Nice speech by RBI Dep Gov. HR Khan on the topic.

Explains why retail participation in G-sec, how G-sec is a decent asset class for retail investors and what RBI is doing to promote retail participation..

Linking rising inequality to declining vocabulary..

January 18, 2013

What an amazing article by E. D. Hirsch, Jr. He is professor emeritus of education and humanities at the University of Virginia.

He refers to several books/papers/media comments over rising inequality in US:

A number of notable recent books, including Joseph Stiglitz’s The Price of Inequality and Timothy Noah’s The Great Divergence, lay out in disheartening detail the growing inequality of income and opportunity in the United States, along with the decline of the middle class. The aristocracy of family so deplored by Jefferson seems upon us; the counter-aristocracy of merit that long defined America as the land of opportunity has receded.

These writers emphasize global, technological, and sociopolitical trends in their analyses.

He says there is another reason for decline in inequality – low vocabulary amidst students. Low vocab leads to poor SAT scores which then lead to problems in college admission.

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