Archive for August 25th, 2022

Adam Smith and Pin-making: Some Inconvenient Truths

August 25, 2022

Prof Timothy Taylor on his fab blog conversable economist says smith’s pin factory example is not a great example of gains of division of labour:

One of the famous anecdotes in economics is about division of labor in a pin factory, as told by Adam Smith starting in the third paragraph of The Wealth of Nations. (One suspects the fame of the story is partly related to the fact anyone who cracks open the book will find it at the very beginning.) Smith notes in the text that his example was already common at the time he used it. But those who specialize in this area have pointed that Smith’s example was based on second- and third-hand reporting, while actual studies of pin-making in the 18th century suggest that it may not be a great example of the gains from division of labor.

Read the post for more details.

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RBI Central Board: Strength in numbers

August 25, 2022

My new article in Financial Express on how RBI Board suffers from problem of chronic vacancies .


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