Archive for June 25th, 2013

A step in the dark: unconventional monetary policy after the crisis

June 25, 2013

It is really nice to read such research from Raghu Rajan. He should stay away from FinMin speeches and actually talk like he did earlier and does it here.

He speaks on the topic at the First Andrew Crockett memorial lecture. Raghu Rajan has always been a critique of using the easy liquidity policies and Keynesian policies to resolve the crisis. He is more in the camp of need for structural policies for structural crisis.

He begins quoting Crockett who alongwith BIS officials did not buy the idea that mon stability leads to financial stability. Like Minsky they argued, the bubble is around the corner and c-bank should look at financial stability and macrofinancial/ macroprudential risks. He then discusses the causes of the crisis an the policies to mitigate the crisis. Finally he looks at the theories behind the policies taken and unintended consequences of the unconv. policies.

In the end:

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Raj Chetty advise to college graduates..

June 25, 2013

Here is the piece. He advises students to take up academics as a career profession and within acads look at economics as well.

He says there are very few application to US univs from India (really?? I thought there were too many):

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