Archive for November 26th, 2014

Why both Keyensian and Free market economic schools are wrong…

November 26, 2014

Jess Sachs says recent crisis has exposed both these dominant schools of thought (just read on..he actually advocates planning!!):

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The Federal Reserve’s Escape from New York..

November 26, 2014

Prof Simon Johnson’s recent piece is on governance at Federal Reserve. In his typical style, he lambasts what has been going on at Fed esp. at NY Fed.

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Is ECB a rabbit in the rabbit/tortoise story? (and Fed/BOJ tortoise??)

November 26, 2014

Harley Bassman of Pimco thinks so.

Aesop relays the tale of a hare who ridicules a slow-moving tortoise, who then challenges the hare to a race. The hare soon leaves the tortoise far behind and, confident of winning, takes a nap midway through the race. When the hare awakes, however, he finds that his competitor, crawling slowly but steadily, has crossed the finish line before him.

Investors may wonder how long the European Central Bank (ECB) will slumber after taking an early lead in the race to expand its balance sheet to facilitate growth across the eurozone – the world’s second-largest economy.

We could call it an economic fable…

It has come to pass that the first- and third-largest economies on the planet – the U.S. and Japan, respectively, and the tortoises of our tale – have engaged in massive quantitative easing (QE) programs as a means to spur monetary velocity (via increased asset velocity – that is, the rate at which assets circulate). Yet some analysts insist the eurozone may not follow suit.

He goes on to suggest that QE may not work in theory but does in practice…

Book Review – A fistful of rice

November 26, 2014

I guess this blog  should just focus on books instead of research papers which take you no where.

Just stumbled upon this book which is story of Vikram Akula, founder of SKS Finance. SKS Finance as we know jumped from nowhere to dizzy heights only to crash.

This book fistful of rice is quite an inspiring tale (even if we believe 50% is truth) of how a person really tries to bring abouct a change in India. And that too someone who did not have to given he was fairly well-settled in US. It is interesting how his father migrated from Andhra to US to escape from poverty and how his son just about ended up doing the reverse. Of course, his parents were not amused with his decision to move to India to work on addressing poverty.

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