Archive for February 17th, 2014

Keeping or Replacing GDP as a measure of economic progress?

February 17, 2014

Diane Coyle of Enlightenment Economics (that is a nice name for a firm on economics), says despite limitations we need to keep GDP as the measure of economic progress.

Criticism of Gross Domestic Product (GDP) as an indicator of the health of the economy has grown in recent years, in part because of a new focus on measures of subjective well-being or ‘happiness’. This column argues that the debate needs to distinguish between the different purposes of measurement: economic activity, social welfare, and sustainability are distinct concepts and cannot be captured by a single indicator. There are good arguments for paying less attention to GDP and more to indicators of welfare and sustainability, but it would be a mistake to adjust or replace GDP.

If not replace, atleast the hype over GDP numbers should decline. Whichever country it is, GDP numbers attract way too much attention typically from financial markets. It takes the attention away from far more important things. If GDP is an imperfect as other indicators, the hype should be less like other indicators too..

Should Asian central bankers emulate the Fed by employing more and more Phds in economics?

February 17, 2014

Two articles on this. First by Justin Fox who argues how Fed has become an econ PhD safe haven lately. The second is by Michael Arnold in WSJ written in a follow-up to Fox on experiences in central banks of Asian economies.

First Fox:

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If UPA did so well, why the need for moratorium on education loans..

February 17, 2014

The interim budget 2014-15 event is over and perhaps the hype will continue for a few more days. As expected the Budget was a showcase for how thankful this country should be for having UPA in power. Highest this, highest that and all kinds of statements were made..

As I was scanning the various statements, came across this interesting one on education loans. The government has announced a moratorium on education loans raised between 2009 and 2013:

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