Archive for May 3rd, 2017

What Nassim Taleb can teach us: The importance of having skin in the game..

May 3, 2017

Prof. Jeff Deist points to lessons from Nassim Taleb.

Most advice from the economic elite causes least amount of damage to them when the advise goes wrong:

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RBI releasing a new Rs 10 coin to commemorate 125 years of National Archives of India..(should promote its own archives as well)

May 3, 2017

Just missed this. Indian central bank announced release of 2 coins to commemorate 2 anniversaries.

I would stick to the National Archives as it is really rare to see celebration of such an important institution yet a highly ignored one. We hardly care anymore for such institutions which play a silent role storing and maintaining historic records. They remain invaluable for researchers yet hardly get any mention anywhere.

So, really nice to see new Rs 10 coins being issued for the occasion:

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Eurosystem’s Target2 balances again aiding deficit countries?

May 3, 2017

There was a time when Target2 balances were seen as the reasons which kept Eurozone going. These are balances which National Central banks of Eurozone countries adjust with ECB. At ESB level these balances net out to zero but there are wide inter-country differences. Like we saw earlier that Germany’s Bundesbank had surplus balances against ECB but likes of Greece had negative balances. Earlier these differences in balances were seen as a result of capital flight. Gradually things improved and these balances declined. See more about the mechanics in my paper here.

It seems that these Target2 balances are again rising, though fir different reasons.

Mishtalk blog quotes from the BIS quarterly review (this is indeed complicated stuff):

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Why Europe still needs cash…

May 3, 2017

Yves Merschodf European Central Bank argues why Europe still needs cash.

He says there are 3 camps which argue for digital payments. However, their arguments are off the curve:

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