Archive for August 7th, 2013

How social capital helped bring Nazis to power in Germany…

August 7, 2013

An interesting perspective on social capital. It released as a NBER paper couple of weeks back as well but could not read it.

The authors show how presence of social capital help bring Nazis to power. The presence of social capital helped Nazis increased membership much faster than possible otherwise:



Raghuram Rajan as RBI’s 23rd Governor — Some comments over his appointment

August 7, 2013

After much speculation over next RBI Governor , It is going to be Dr. Raghuram Rajan. Post-speculation, the commentary would focus on checklist for Dr. Rajan.  Given the state of the economy, he would have plenty of advice to ponder upon. My blog hit a high yesterday with people looking for all kinds of info on Rajan and somehow coming to my blog.

Though, his appointment has never been a surprise. Market participants in Mumbai always speculated that the reason to make Dr. Rajan as the Chief Economic Adviser is to give him some policy experience before he can take over as RBI Governor.  It was already in the making. I never used to believe these stories earlier but it is amazing how they come true.  The efficiency market hypothesis which says markets know everything may not work for pricing of markets but does for these policy appointments.  Even in case of Dr Gokarn people knew beforehand that he would be out as Delhi did not like his inflation stance and it was right as well.

There were not many choices anyway. There were just two – Dr Arvind Mayaram and Dr. Rajan.  Comparing the two is like apples and oranges. Reading a few columns, people say there could not have been a better choice. I am not too sure.


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