Archive for January 28th, 2014

Don’t believe the hype about behavioral economics..Really?

January 28, 2014

Allison Schrager a NY based economist says beh eco is mainly hype.

She says beh eco has not delivered the expected results:

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RBI’s Flip Flop policy and Dr. Rajan’s bogey game continues..

January 28, 2014

Not sure what is going on at RBI. It should perhaps change its name to Random Bank of India (this will keep the acronym to RBI) given its recent nature of policy. Or a more suitable and perhaps preferrable Surprise Bank of India (this will require a change in both the name and acronym with latter clashing with the largest bank in the country). May be another committee can be floated to work on this..

Once again, against market expectations, RBI hiked policy rates. The bogey game continues but perhaps it is likely to be over as the statement suggested that no more rate hikes will be needed. But then the same was said in October review as well. Who knows? Just that markets have not really played a bogey so far…

Another thing is this confusion between RBI statement and Governor’s Press statement. Earlier, first version was longer and second was a shorter version for the press. Now both are nearly same. Why duplicate?

The blog supports revisiting the inflation stance but does not understand this idea of hiking rates for the sake of it. It has been way too random. Also read this piece for the confused policy at RBI which printed before the policy.

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