Archive for January 30th, 2014

How gold prices are linked to real yields of Treasuries…

January 30, 2014

Nicholas J. Johnson of PIMCO has this useful piece on figuring Gold prices.

We usually say that when Treasuries become risky people buy gold and vice-versa. So there is an inverse relationship between treasury yields and gold prices.

His analysis looks at this relationship closely:

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India’s trade paradox and Joan Robinson..

January 30, 2014

Arvind Subramanian of PIIE keeps  churning insightful pieces on Indian economy.

This one on trade (pretty dated as it appeared in BS on 10-Jan-14) looks at whether India trades more or less.

He says there is a paradox. India has much higher barriers to trade than is visible in services. But at the same time trades much more given its size compared to its peers. So as Joan Robinson says (which Dr Subramanian quotes very often) ..everything  and its opposite is true in India…:-)

A point which he does not cover but strikes this blog is this — Is our services  sector so buoyant  as we have such high trade barriers on the same? Is it just artificially competitive?

Pitfalls of practicing development economics like a Turing Machine…

January 30, 2014

Another great piece by Prof. Ricardo Hausmann of HKS.

He points to a book which says our brain doe not work like Turing Machine based on tables of rules. It is actually “giant hierarchical memory that is constantly recording what it perceives and predicting what will come next.

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Lessons from the World’s Most Tech-Savvy Government — Estonia

January 30, 2014

Just to point this as a start – Estonians actually elect their Parliament online!

I was amazed to read this piece by Sten Tamkivi (of The Atlantic) on Estonia’s emergence as a tech powerhouse . It lost a lot of years due to Soviet Occupation in 1991 but has geared up really well since then. It has taken on the technology big way.

Estonia is perhaps in the news for wrong reasons. First, it became the 17th member of EU in 2011 and then this battle with Krugman over its austerity policy..

We should be talking more about its ventures with technology:

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