Archive for January 21st, 2015

Book review: Exchange rate policy and modelling in India

January 21, 2015

This is a book which should be read by people interested in Indian economy and its exchange rate policy.

Written by Prof. Pami Dua of DSE and Rajiv Ranjan of RBI, the book gives a good and detailed account of how our exchange rate policy has evolved over the years.

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Book Review: Children of Light ..How electricity changed Britain forever

January 21, 2015

This is an amazing historical account by Gavin Weightman. We take so many things for granted and forget how certain individuals and their struggles gave us things like electricity, automobile etc.

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Will e-commerce lead to sticky prices becoming extinct?

January 21, 2015

This idea did not strike me. With e-commerce getting a second life, one is seeing huge activity in this space. One also expects that prices change frequently on these sites as they monitor demand and supply on a more real time compared to online stores.

Much of macro revolves around sticky prices which means prices do not change immediately in case of a shock. This has huge ramifications for policy and research.

So, with e-com springing, should  we expect prices to become more flexible and sticky prices becoming extinct overtime?  Not really as suggested by Yuriy Gorodnichenko, Oleksandr Talavera, Slavik Sheremirov. They look at pricing behavior on certain e-com sites and say sticky prices are here to stay:

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