Archive for May 7th, 2015

HDFC Bank offers unsecured personal loans in just one minute..

May 7, 2015

This blog is really interested in the new products/technology offered by financial firms and banks.

Came to know of this loan  from HDFC Bank where you get a loan processed in just one minute.


Private Sector to Begin Ferry Service to Cuba..

May 7, 2015

Why did it take so long? Simple, it was not allowed by the govt…

The US government has approved several firms’ plans for ferrying cargo between Florida and Cuba. Why haven’t people been ferrying goods to Cuba until now? Because any entrepreneur seeking to do such a thing faced heavy fines and even imprisonment under US federal law. 

The acceleration of trade between Cubans and Americans represents and expansion of freedom in international trade, and also expands the boundaries of legal economic action under US federal law. 

Ironically, many supporters of the Cuban embargo fancy themselves as supporters of free markets, but their pro-embargo position means they favor fines and imprisonment for entrepreneurs who wish to engage in peaceful trade with persons and organizations in Cuba. Embargoes also necessarily support an expansive federal bureaucracy necessary for enforcement.

The nearly instantaneous appearance of cargo shipping to Cuba (via both air and water) by American firms shows the interest in that market all along. But, of course, thanks to threats of violence from federal officials, such innovation has never been allowed to flourish. with the expansion of more free trade in this case, however, the federal government has gotten a tiny bit smaller.


Common sense on the financial crisis – don’t blame financial markets

May 7, 2015
Patrick Minford of  Cardiff Univ has this piece:

Well, you get what you sow. Before the crisis there was tremendous hubris around what finance and monetary policy can do. The whole thing was to just deregulate finance and let central banks be free from govt (and be slave to finance). As both collapsed, they are all out to blame each other. The econ models may show one factor ruling over other (as is the case in this article), but we know such models have limitations. Just change a few equations and results could be very different.

The financial crisis was a combination of many things but above all it was hubris in economic and finance thinking which paved the way..

Flip flop over Indian central bank’s new roles/objectives..

May 7, 2015

Ever since the Budget 2015-16, there has been a lot of noise around Finance Bill which was to redefine Indian central bank’s new role. Actually the role isn’t anything new but was to become more precise and defined in form of inflation targeting.

Like all other IT central banks this would have meant RBI giving up all the powers to look at so called multiple indicators. The objective shall be just one – target inflation. Despite limitations of the IT framework which has been exposed during this crisis, we have gone ahead with the framework. Even the so called independence idea that IT central banks are more independent needs to be questioned.

But then we have gone ahead with these ideas (without much debate), so we should stick by it and make all the necessary changes required to make the framework consistent as explained here.

But  what is it that we see? The parts of Finance Bill which were to make this new policy consistent have been rolled back. Even worse is to see  experts who  hyped these changes have celebrated it as a victory of Indian central bank! They see that Indian central bank will continue to maintain its powers and not lose it to irresponsible govt. Really? This is just like the emperor’s new clothes story where the tail0r keeps fooling the king and public that there is something really fashionable the king is wearing but the reality was he was not wearing anything at all.


Japan isn’t just a knockoff nation..

May 7, 2015

The big challenge for Asian countries like India and China is to innovate the next gen products and services.

Noah Smith has this interesting piece on how Japan achieved this transition. People in the west ofen complaint that Japan is just an imitating country. Reality could not be more different:


Son preference drives India’s high child malnutrition rates

May 7, 2015

Nice piece by Seema Jayachandran and Rohini Pande

They use children height as a variable to figure son preference in India:


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