Archive for July 17th, 2013

Sporting Mega-Events: What the Protesting Brazilians Learnt from their BRICS Compatriots

July 17, 2013

Brilliant piece by one of my favorite sports journos – Sharda Ugra. She points how these mega-sporting events are turning out to be disasters:

The legendary Pele got an earful from the hundreds of thousands of protestors on the streets of Brazil who refused to heed his appeal to “forget” the protests and support the national football team.  Unthinkable as it is, does it indicate that popular protests have finally overcome their inability to challenge the sporting mega-event, that the modern day “circus” is now seen for what it is: a scam of massive proportions? 

She points how LA Olympics in 1984 was the last of such event which was profitable. Rest have been curses on the respective economies with Brazil likely to add to the cursed list.

Cato Institute’s Project on troubled currencies and underreporting of inflation

July 17, 2013

A very interesting research by Prof Steve Hanke of Cato Insti.

He shows how some countries are underreporting inflation using exchange rates from black markets:

For various reasons — ranging from political mismanagement, to civil war, to economic sanctions — some countries are unable to maintain a stable domestic currency. These “troubled” currencies are associated with elevated rates of inflation, and in some extreme cases, hyperinflation. Often, it is difficult to obtain timely, reliable exchange-rate and inflation data for countries with troubled currencies.

To address this, the Troubled Currencies Project collects black-market exchange-rate data for these troubled currencies and estimates the implied inflation rates for each country. The data and estimates will be updated on a regular basis. A current snapshot is presented in the table below. 

It show Argentina’s actual inflation is 25% but reports 10.3% and so on. Six economies have troubled currencies..

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