Archive for February 7th, 2019

RBI’s surplus transfers to the government: Lessons from other countries

February 7, 2019

My new piece on Moneycontrol where I look at how other central banks transfer surpluses to their respective governments.

Venezuela crisis explained: a tale of two presidents

February 7, 2019

Good primer on ongoing political drama in Venezuela:

Venezuela finds itself with two presidents engaged in a high-stakes game to control the country’s future. The country has also had two “national assemblies” and many questions about how the constitution should be applied. So, how did it find itself in this position?

From Commodity to Fiat and Now to Crypto: What Does History Tell Us?

February 7, 2019

Nice paper as always from Prof Barry Eichengreen:

Over time, there has been a tendency for political jurisdictions and residents to converge on a single currency. Monopoly over seigniorage is a source of political power and a valuable lifeline when sovereignty is threatened. Moreover a uniform currency, insofar as it is free of counterparty and liquidity risk, facilitates economic activity. But will digital currencies now reverse this trend toward uniformity, given the apparent ease with which they can be created? The information sensitivity of those units, evident in the fact that they trade at varying prices, suggests that they do not yet provide the core functions of money. So-called stable coins are intended to bridge this gap, but whether they can be successfully scaled up and maintain their stability is doubtful. The one unit that can clearly meet these challenges is central bank digital currency. But there would be both costs and benefits of moving in this direction.


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