Archive for August 4th, 2016

How the crisis of 1772 shaped change in Wealth of Nations…

August 4, 2016

Supposed father of economics, Adam Smith also had to go through an economic crisis to shape and change his views about banking.

Tyler Godspeed has a piece on the same. Starts with Hume writing to Smith:

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Successive droughts causing a revival of traditional water management techniques in few Indian states…

August 4, 2016

No matter how much we boast about building Modern or global or smart cities, the traditional techniques were far superior on these basic public services.  Water was one of them. There was a broad sense amidst most people that water is a scarce essential good and it needs to be preserved at all costs. Ypu go around most old cities of India and you see this aspect of water conservation deeply ingrained.

Thanks to this modernism nonsense we have just lost the sense of importance of water. As all things can be brought under the sun as long as you have money, same thinking has gone to water as well. Back then people always feared droughts and now we think of it just as an exception. But then these things strike you hard once things don’t go as per plan.

The two years of successive droughts have led some states to wake up to reality. They have gone back to traditional ideas:

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Financialization and its discontents

August 4, 2016

This is an interesting philosophical piece by Prof. Perry Mehrling. He says both financialisation and discontent with it are hardly new.

Just that we get mixed up in our understanding of money and credit. We like money for some of its features and credit for some other features. But in the discontent we just focus on money and not credit:

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Indian Government Bond Market – Some basics and their trading activity…

August 4, 2016

Michael Fleming, Samita Sareen, and Seema Saggar of NY Fed have a rare paper on Indian bond market.

Indian bond market developments are ignored significantly by the media. The bias is hugely towards equity markets and bond market developments are rarely covrered.

This bit is ironical as on one side we track central banks interest rate movements with huge obsession. But on the other hand we do not cover the bond market which reacts immediately on any such news. Based on our equity market coverage, we should be actually getting more news about the capital market regulator – SEBI- but hardly get anything much. So there are these puzzles in both sides.

Anyways, coming to the paper. They say trading remains centred on benchmark issues:

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