Archive for January 18th, 2018

History of macroeconomic models from 1930 to today..

January 18, 2018

This is an interesting PPT from Benjamin Moll of Princeton Univ:

The Main Point of My Talk
• Macroeconomics and inequality is a two-way street
inequality ⇐⇒ macroeconomy
1. macroeconomic shocks and policies affect inequality
2. inequality affects macroeconomic aggregates
• This idea may sound obvious to you but  it only made its way into mainstream macro relatively recently
• lots of people (economists, journalists, …) frequently forget
• Another theme: large gap between  
• current research in academic macroeconomics
• macroeconomics in media/blogs, undergraduate teaching

One atleast gets some clarity about the different models. He divides these models across 3 generations.

Lots to ponder and think about.

Videos: The History of Europe, South Asia and South East Asia

January 18, 2018

Utopia – you are standing in it blog has three fascinating videos.

The videos show how these three regions have changed over centuries:



South African central bank can be liquidated but no provision for nationalisation in its Act..

January 18, 2018

I had blogged about how the how the South African government is planning to nationalise Central Bank which till date is privately owned.

Prof Jannie Rossouw of University of the Witwatersrand looks at the matter.

He says the shareholders hardly play much role anyways. The central bank policies are mainly run by the Governor and Dep GOvernors who are appointed by the President. The sahreholders can elect 6 of the 13 members and get dividends not more than 10% per annum.

He says nationalisation will require change in the Act. Currently, the Central Bank Act talks about liquidation not nationalisation. Ultimately it all boils down to law:


Differences between Development Banks and Wholesale and Long-Term Finance (WLTF) banks..

January 18, 2018

Dr YV Reddy spoke on the topic at the centenary of Indian Economics Association.

He chose the topic given recent RBI discussion on Wholesale and Long Term Financing Banks:

I chose the subject Development Banking for the lecture today because there is a revival of interest in development banking consequent upon the large amount of non-performing assets in the banking sector in India. It is believed that large part of NPAs, are on account of banks’ exposure to the infrastructure sector. It is now felt in some quarters that the universal banks are not the ideal institutions for
development of infrastructure. There is, therefore, interest in resurrecting Development Banks.

The Reserve Bank of India has circulated a discussion paper recently on Wholesale and Long-Term Finance (WLTF) banks. The discussion paper recognises the current problems faced by banking sector in long-term and project finance, in particular, infrastructure projects and also reflects the change in attitude of the RBI in regard to differentiated banks.

What is a development bank?


RBI: Rs 10 coin is legal tender..

January 18, 2018

Yesterday, RBI issued a press release saying Rs 10 coins are legal tender. They also shared links to 14 types of Rs 10 coins with all being legal tender:


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