Archive for July 31st, 2013

Inverted yield curve in India..

July 31, 2013

As always huge commentary has flown post RBI’s Q1 2013-14 monetary policy.

A. Seshan in Businessline points to this known but seldom reported trend ongoing in India –  inverted yield curve in G-sec markets:

(more…)

Advertisements

Giffen behaviour in Irish famine markets: textbooks giving a wrong example??

July 31, 2013

A really interesting paper. Normal goods are those whose demand declines when price rises. GIffen goods are those goods whose demand rises when price rises. Econ textbooks usually cite potato in Irish famine as an example of Giffen good.  Interestingly, not many examples have come  from historical examples so far.

This paper shows potato is not really the right example for Giffen good. It is Pork actually:

(more…)


%d bloggers like this: