Archive for December 8th, 2014

Improving the security and cost-effectiveness of banknotes…

December 8, 2014

Management of currency notes is  one of the least focused tasks of monetary management. The origin of central banks largely came from this activity. There were many banks which issued their own notes convertible into some commodity (mainly gold). Some of these banks over-issued these notes, leading to problems of liability management. The governments then decided to have one bank issue notes which eventually came to be known as central bank. Then gradually, these banks were given additional tasks. Earlier, the banks had both deposits and currency as liabilities. But with central banks coming in picture, the currency became liabilityty of the central bank and deposits of banks.

Mr François Groepe of the South African Reserve Bank has comments  on this currency management business:

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Will Hong Kong become irrelevant as Mainland China opens up?

December 8, 2014

Nice speech by Mr, Norman Chan of HKMA.

He says there is no reason why HK should decline as mainland China opens up. Both have their own strengths. He shows through statistics how things between the two regions have only improved overtime.

By leveraging on each other’s strengths bot can gain:

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Japan faces stagflation risks??

December 8, 2014

This is a weird prediction by Morgan Stanley econs even if they attach very low probability to the event.

The idea is Japan could have inflation moving in positive zone closer to its target of 2% but growth likely to remain stagnant. This could be a case of low stagflation:

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Bihar story: Resurrection of the state..

December 8, 2014

Nice to see Chief Minister of Bihar Jitan Manjhi’s piece on the topic. I had earlier pointed to this nice interview of Bihar’s secretary Anjani Singh on the state’s resurgence.

Both the pieces are very similar:

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