Archive for January 8th, 2020

Ahmedabad based Kandoi Sweets: 175 years of history

January 8, 2020

I was intrigued to see today’s edition of Ahmedabad Times. It had an ad of Kandoi Sweets which apparently is 175 years old and is celebrating the same. Really rare to see a sweet shop survive 175 years.

The website of Kandoi Sweets says (has one!):

In 1845, two brothers had one vision – to be the chosen ones for adding sweetness during the celebrations and festivals of their customers. They started with one small shop and a factory, in Manekchowk, one of the oldest parts of Ahmedabad city. They knew only one thing that they would serve sweets of the best quality and enhance the joy of festivities.

That one small step by Mr. Bhogilal and Mr. Mulchand led to what is today a name to reckon with, when it comes to sweets. Kandoi Bhogilal Mulchand sweets are today a must during any festival or celebration in Ahmedabad. Be it Rakshabandhan, Diwali, Dussehra or a birthday or wedding; any event in Ahmedabad is incomplete without the sweet presence of Kandoi sweets.

With 6 stores and 2 manufacturing units, Kandoi Sweets is now marking its presence across Ahmedabad city. This is not all. With our online portal and advanced logistical facilities, we are now ready to serve customers across the seven seas, especially our Gujarati brothers and sisters settled abroad, who just love our taste.

….

The word Kandoi literally means confectioner. For the last five generations, Kandoi Bhogilal Mulchand has been synonymous in Ahmedabad with quality sweets. Now, we have spread our wings internationally too. We have expanded our business especially to serve Gujaratis and Marwaris settled abroad who long to have their favourite traditional sweets. We ensure that the packaging is non-breakable and leakage-proof. You can order from our online portal and we will have it delivered to you via courier.

Nice to note this!

Celebrating Ecuador’s Dollarization

January 8, 2020

Lawrence Reed in this piece writes on benefits of Ecuador Dollarisation:

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Why Sweden ended its negative interest rate experiments

January 8, 2020

Sweden ended its negative rate policy recently. Bernanke recently spoke on how consequences of negative interest rates have not been that bad.

Daniel Lacalle gives an Austrian school perspective:

Negative rates are a huge transfer of wealth from savers and real wages to the government and the indebted. A tax on caution. They are the destruction of the perception of risk that always benefits the most reckless. The bailout of the inefficient.

Central banks ignore the effects of demography, technology, and competition on inflation and the growth of consumption, credit, and investment, and with the wrong policies they generate new bubbles that become more dangerous than the previous ones. The next bubble will again increase the fiscal imbalances of the countries. When central banks present themselves as the agents that will reverse the effect of technology and demographics, they will be creating a greater risk and bubble.

Sweden launched its failed negative rate plan almost five years ago and has now reversed it due to the financial risks that are created. The most interesting thing is that it reversed the policy of negative rates precisely because of the risk of an economic slowdown, because the evidence shows that investment and consumption decisions do not increase with financial repression.

In Sweden, with negative rates, the real estate price index has increased 50 percent (from 160 points to 240), the average residential index has risen 27 percent, nonreplicable assets have risen between 30 and 70 percent (infrastructure, etc.), and the stock market has risen more than 20 percent. In that period, household consumption and investment (gross capital formation) have increased very little and real wages have remained stagnant.

Monetary policy has gone from being a support for structural reforms to an excuse to avoid them. Now, governments are delighted to read that “fiscal measures” must be implemented. And when a government hears “fiscal measures,” it translates it into “spending.” And when the eurozone governments start spending, the result is always the same: more debt and higher taxes.

In the eurozone, the economic aberration of negative rates continues despite the evidence of the collateral risks they generate. Meanwhile, you and I are blamed for not spending and borrowing more. What can go wrong?

 

The 3 E’s of central bank communication with the public

January 8, 2020

Andrew Haldane, Alistair Macaulay and Michael McMahon in this paper point to 3 Es of central bank communications:

In this paper we explore both theoretical and empirical evidence on communication with the general public. The model provides guidance for policymakers by highlighting some potentially important risks in communicating simply with a broader audience. In particular, in a model where trust and engagement are low, there are benefits to engaging a wider audience. But doing so risks ultimately lowering welfare unless guided by the 3 E’s of public communication: Explanation, Engagement and Education. Central banks have made great strides in all three, but numerous challenges remain.

 


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