Archive for September 1st, 2016

Private prisons are not the same as free prisons..

September 1, 2016

Discussions on prison as an economic entity keep coming. This blog posted about  US ending private ownership of Federal prisons. There was another article which discussed how Ramen noodles are replacing cigarettes as the currency in US prisons.

Further on the first bit on ownership, here is a piece which says  private prisons are not same as free prisons:

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Why it makes sense for an M.D. to lead the World Bank? (some insights from history of Indian banks too!)

September 1, 2016

World Bank’s recently appointed Chief economist Paul Romer in this post talks about why a Doctor of Medicine (MD) is a good fit to lead the world bank. After all his new boss his Jim Yong Kim who heads the World Bank with the original Dr attached to his name. So Dr Romer (who is a doctorate in economics) has no choice but to defend his Doctor in Medicine boss! Boss is always right no matter who he/she is the cardinal rule in any organisation.

Jokes aside, Romer says an outsider appointment is more efficient at cutting the flab:

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There are serious limits to central banker’s machoism: Case from Bank of England history

September 1, 2016

Recently former Indian central bank chief spoke about how he was not the uber-confident alpha male liked by markets. He was obviously reflecting on the few such central bankers whose over the top statements continue to be given big likes by markets. The markets ironically love this central figure who with his loud statements and display of bravado like that of yesteryear (and even today) dictators.

The earlier dictators swung mood of the general public in their favor and today’s central bankers try and seing the mood of markets in their favor. Nothing else actually matters. What is actually just comical stuff is appreciated by one and all. But then as it is true with all dictators happens to central bankers as well. Seeing nothing much happening other than image management, people soon figure the folly of their beliefs and we have a crisis before things come back to normal.

This research by Prof Stefano Ugolini of University of Toulouse shows how Mario Draghi statement of “whatever it takes” was just that. He also draws lessons from Bank of England during Gold Standard phase before World War I. The Bank was expected to lead the world but faltered. This was minus all the bravado from BoE chief as we didn’t need central bankers then to show off. We had quite a few dictators doing the job:

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How Kazakhstan’s cuurency tenge wins several awards for best currency design

September 1, 2016

Didn’t know this at all. 

Niccole Braynen-Kimani of IMF point to Kazakhstan currency Tenge winning many awards for its design:

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How econs first developed discipline of marketing, then dumped it and now need to revisit it..

September 1, 2016

Philip Kotler is one name most management students are atleast aware of.

In this piece he talks about economists topsy turvy relationship with field of marketing:
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