Archive for April 29th, 2019

A walk down memory lane: when Bombay went to the polls

April 29, 2019

Nice bit from Hindu newspaper’s archives:

The Hindu taps into its 140-year rich archives to bring you glimpses of Mumbai’s eventful past, and, lest we forget, remind us all how we got where we are today

When RBI Played Angel Investor To India’s Early Financial Institutions

April 29, 2019

Last week, RBI transferred its stake in NABARD and NHB to the Government. Now RBI just has three subsidiaries on its balance sheet.

However, there is a long history of how RBI played the role of VC in developing India’s Financial Institutions of different kinds. Perhaps RBI is of the few central banks which are unique in this aspect.

My BQ piece (behind paywall) tracks this interesting journey, which is one of several in RBI’s history.

From Fed Speaks to Fed Listens: Signaling change in central bank’s communications?

April 29, 2019

My new piece in Moneycontrol.

I argue how Federal Reserve ‘s new communication’s program named as Fed Listens is trying to reshape central bank communications. Earlier it was all about Fed Speaks where every word of the central bank was heard and interepreted. Now the central bank is trying to move to other side of the communications table of listening.

What comes as a breath of fresh air is how the Fed is nudging us to think that it is trying to listen and not just speak. Moreover, speaking was mainly restricted to market participants whereas listening is much broader. The idea is to signal that the central bank is not just open to communicating beyond financial markets but also listening and incorporating views of others. This implies that Fed communications, which were deemed as a one way street not long ago, is becoming a two-way street.

Management literature also shows how best leaders are not just great speakers, but great listeners too who empower their teams to achieve their objectives. The Federal Reserve seems to have taken a leaf out of that book. Given that it is the de facto leader of central banks, Fed Listens is a welcome change and others should follow suit.

This change will also be welcome by ornithologists! The central bankers are often categorised as doves, hawks, owls and so on based on their “nature of speak”. This analogy is flawed as birds are first great listeners and then speakers as they rely on listening skills to keep off threats.


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