Archive for July 27th, 2018

Iran to launch state-backed cryptocurrency to sidestep US sanctions

July 27, 2018

Earlier, the Iran Government banned private cryptocurrencies. But now  they are planning to start its own crypto:

As US sanctions loom, Iran is reportedly planning to launch its own crypto-currency, according to a 25 July story from the nation’s official news channel Press TV. The report claims Tehran is preparing to develop its own digital currency to circumnavigate impending sanctions from American President Donald Trump’s administration that, says the Islamic Republic, aim to cripple the country.

The sanctions come as Washington prepares to not just leave the international Iranian nuclear framework agreement but also penalize anyone that does business with Iran. It is anticipated that this will bring serious financial consequences to the country’s oil, banking and even its famous carpet trade sectors.

“We are trying to prepare the grounds to use a domestic digital currency in the country… This currency would facilitate the transfer of money (to and from) anywhere in the world. Besides, it can help us at the time of sanctions,” Alireza Daliri, deputy for management and investment affairs at Directorate for Scientific and Technological Affairs of the Presidential Office told Press TV.

Will be interesting to track this bit of news…


Milton Friedman and the case for flexible exchange rates and monetary rules

July 27, 2018

Harris Dellas and George S. Tavlas (both at Bank of Greece) review Friedman’s thinking on flexible exchange rates.


After New Zealand, Irish Central Bank also looks to cartoons to explain its activities to public

July 27, 2018

Recently, New Zealand central bank took to cartoons to explain its policy decision.

Now. Ireland central bank is planning to take this route as well:


Some Things a Central Bank’s Banker Doesn’t Know About Monetary History

July 27, 2018

BIS chief Agustin Carstens has been speaking against the cryptocurrencies.

Larry White says the central bank’s banker should learn some lessons on mon history.

While it is true, as Carstens notes, that banknotes did not circulate a par nationwide in the United States during the antebellum period, the reason was not fraud but government interference in the form of legal restrictions against interstate branching. Nationwide par circulation was the norm where banks were free to branch, as in Canada and Scotland. When Carstens (p. 7) refers to “the unhappy experience with private forms of money” he ignores the facts. When he suggests that “the experience with currency debasement that has peppered history” should warn us against “the proliferation of such private monies,” he inverts the facts. Currency debasements have been symptomatic of government monopoly in currency, not of private competition. A central bank with a monopoly on currency issue can debase the currency. A single bank in a multi-issuer system cannot, neither legally nor practically. As Adam Smith noted, the greater the proliferation of private note-issuers, the lesser the consequence to the public of the failure of any one of them. The system is robust. A central bank monopoly, by contrast, is a fragile single point of failure.

Well. not just BIS but applies to other central bankers too..

Making economic research more readable and interesting…

July 27, 2018

IMF has redone its Research Bulletin.

IMF has renamed it as Research Perspectives and has presented it in a “fresher, bolder look”.

When you read the Spring/Summer 2018 issue of the IMF Research Perspectives (formerly published as IMF Research Bulletin), if we did it right, you will meet
the more approachable, more human side of IMF research and IMF researchers. The bulletin has just turned 18, and we thought this was a good time to revamp the design and content. How?

First, we transformed our Q&A feature into a complete interview. Second, we added more research summaries to give you a better sense of what IMF research has to offer on recent topical issues. Third, we changed the design to make your reading experience more enjoyable and reaching out to the contributors
easier. And, of course, we changed the name to Perspectives, which we feel more accurately reflects our new approach focused on sharing views and encouraging interaction.

One thing that hasn’t changed is our commitment to conduct and disseminate state-ofthe-art, policy-relevant research to foster further discussion for better
policymaking around the world. 

Such an undertaking would not have been possible without a dedicated group of individuals: the guest editorial team led by Sweta Saxena and the design team led by Felipe Leon deserve the utmost credit.

We hope you will like our fresher, bolder look. Let us know what you think.

Looks promising with all the colors and pictures.

Some institutions like IMF are making efforts to make their economic research more readable and accessible. This is encouraging.

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