Archive for June 9th, 2017

State Bank of Pakistan continues to include IOUs from India during Partition on its balance sheet!

June 9, 2017

The superb JP Koning looks at Indian monetary history during partition in his recent post. I had blogged a similar piece earlier as well.

During Partition, there were differences between India and Pakistan over distribution of assets and liabilities of RBI. The RBI was to give share of assets equivalent to notes which circulated in Pakistan. However, there were more notes than RBI imagined leading to differences. All the details are there in RBI history (1935-51).

What is even more interesting is that these assets continue to be recorded by Pakistan central bank (State Bank of Pakistan)! Being a history buff, I should have checked this.

Koning notes:

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Bulk of economics lessons in one chart…

June 9, 2017

Good Friend Kumar Anand sends me his piece (coauthored with Amit Varma).

This chart just sums up much that is to economics:

One can just explain so much via this chart..