Archive for the ‘Blogs to Read’ Category

What’s Wrong with Econ 101?

June 17, 2016

David Glasner says main culprit is poor teaching.

I mean how many economics students can even figure what is he saying in the post? Instead, most will say instead of reading this let us just solve a few models and equations!

Announcing The Indic Bloggers Awards! Upto Rs 1 Lakh In Prizes!

June 16, 2016

Someone is atleast valuing and acknowledging the blogging community in India.

Swarajya, in association with Indic Academy has announced the annual Indic Blogger Awards. There are four categories for nomination – social issues, economics, political analysis and culture:


If Pate’s Grammar School sets UK Monetary Policy…

June 15, 2016

Each year, the Bank of England organises the Target 2.0 competition for A-level economics students.  This year  Pate’s Grammar School won the competition.

In this guest post on Bank’s blog  ( the winning team explains what they would do if they were at the MPC:

We decided as a team to hold Bank Rate at 0.5% and to maintain asset purchases at £375bn. In our view it is not yet time to tighten monetary policy. Though we believe the output gap is small, we feel the economy is yet to reach escape velocity and the Wicksellian natural rate is likely to stay low in the years ahead. We are more optimistic on potential supply than other economists and we think oil prices will stay low.

Escape velocity? Oh no! A level students should be using more economic terms so to speak.

Read the whole thing. It just reads like any other MPC statement. Not sure how should one react reading this.  Perhaps, the MPC can be replaced with these young guys. Based on their kind of analysis, one wonders whether you need the kind of army employed by Bank of England.

Could a leap year matter so much to GDP accounting?

June 9, 2016

My good friend Vipul Mathur has finally started blogging. This is like inviting competition for oneself and threaten yourself to oblivion.

His first post is on this leap year effect on Japan’s GDP:


“Nothing can be more absurd than this whole doctrine of the balance of trade”….

June 3, 2016

David Glasner questions this belief that trade deficits are necessarily bad:


How Capitalism created modern motherhood..

May 25, 2016

This post appeared on Mother’s day. Nevertheless still an interesting read.


Mostly Economics ranked in top 100 economics blogs!

May 16, 2016

Today is a big day for Mostly Economics Blog and its viewers. ME  has been ranked 79 in these rankings by intelligent economist of best economics blogs in 2016. The blog completed its 10 years in April 2016 as well.  So, a very good 2016 for the blog.

To be included in the list with such big names of economics world is truly inspirational and humbling..

Thanks all the visitors and well-wishers..

What China can teach us about the future of banking?

May 10, 2016

One has to rub his eyes on reading title of this post. I did too.  Lessons of Banking from China? That too on future? Really?

But Spontaneous Finance Blog thinks so.  And the lessons are not about how China made the right banking policy etc. But how it made the policy which led to troubles:


A roller coaster simulation of inflation-adjusted crude oil prices, 1946-201

April 19, 2016

Superb video on Chris Blattman blog. Brilliant ride and its does feel like as if one is sitting on roller coaster. Highly recommended to take the ride.

The global economy is actually like this theme-park as of now with multiple rides. Some promise a lot of thrill but are a disappointment. Then there are those less hyped ones which give much better bang for the buck.

Subsidies are the last refuge of a failed policy maker?

April 18, 2016

Ajay Shah has a post on the topic. The summary is:

Many times in India, subsidies are being used to express sheer value judgments; they are just the faddish thinking of one bunch of hausfraus running policy versus another. At other times, a market failure is indeed present. But instead of more subtle interventions and the minimum use of force — based on a sound scientific understanding of the anatomy of the market failure — we tend to rush to the excessive use of force that is a subsidy. Every subsidy is grounded in the monopoly of violence of the State that is required for tax collection. We should be far more circumspect before doling out subsidies. Subsidies are the last refuge of a failed policy maker.

One may disagree with what the author has to say but points have been well argued.

I guess the problem is not subsidies but open ended ones. Some form of subsidies might be needed to get things going in initial years. But they continue to go forever without looking at merits of the case. What is needed instead is a closed end approach to subsidies where after a definite time, they should be phased out.

Do Harry Potter tales have lessons for central banking?

April 8, 2016

This blog pointed to this post linking Harry Porter to economics. It said Ministry of Magic was just antithetical to economic world where market exchange should allocate resources not some bureaucracy .

In a rebuttal on Mises Blog it says Potter world was not all that bad. It has some useful lessons for central bankers:


Did Mr Ricardo consult Mrs Ricardo before coming out with the Ricardian equivalence idea?

March 9, 2016

Manasiecon blog is the go to blog on economics humor.

In her recent post on the International Women’s day, she takes a dig at the male dominated world of economic theories:


Does the role of the Rajya Sabha in the legislative process require reform?

January 22, 2016

This is a superbly argued post by Suyash Rai of NIPFP. I hardly know anything about the subject so no comments on the author’s suggestions on reforming the Rajya Sabha. What is interesting is the way Suyash writes about various aspects of Rajya Sabha working and its role in Indian polity.

There is a lot of criticism on Rajya Sabha’s role in thwarting progress. Author says the purpose of Rajya Sabha was to slower things, so it is just doing its role:


A good president makes history, a bad president changes history books..

January 21, 2016

Well, how this thing of either making history or changing history is so common across countries. In a country like India we are continuously debating over our history and what should be taught and not taught. Most Indian politicians draw some parallels or justify their actions based on some historical construct. This makes history a fairly dangerous subject as well.

Anam Naqvi has this interesting post on South Korean policy deciding on what to be taught in  their history:


What happens in an economy when banks close down?

January 21, 2016

Ben Norman and Peter Zimmerman have this fascinating post on financial history.

Greece banks closed last year and the post draws parallel from Irish example in 1970s. Now unlike Greece banks Ireland banks closed due to strikes. What happened was interesting:


Mostly Economics Annual Report -2015 and new year wishes to all vistors…

December 31, 2015

Another year passed by and WordPress has been again kind to release annual report of ME blog for 2015.

The number of visits were sliding each year and really happy to note that the tide has been reversed this time.

  • 2012 – 340,000 visits
  • 2013 – 240,000 visits
  • 2014 – 210,000 visits
  • 2015 – 310,000 visits

Thanks to all the visitors/guests for coming to the blog and reversing this trend. Hope you keep visiting next year as well.

Wishing all a great 2016!


Should Fed start its own Fedcoin?

December 29, 2015

St. Louis Fed Vice President David Andolfatto makes a case for Fed starting its own bitcoin variant  called Fedcoin.

He says the bitcoin idea is exciting as it helps make payments much faster. The disadv is its volatility:


Learning about Chinese economic history

December 4, 2015

This is a good new source on figuring Chinese economic history (HT: MR blog) . We hardly know anything about it and make a mess of our analysis on CHina. Just using western economic analysis lens, we miss most of the key aspects of Chinese economy and society.


How is Development Economics Taught in Developing Countries?

November 19, 2015

David McKenzie (of World Bank) and Anna Luisa Paffhausen ( of University of Passau) have written an interesting paper on the topic. They summarise the findings in this post:


Bankruptcy reforms: It is not dejure ranking but defacto outcome that matters..

November 16, 2015

Insightful post by Rajeshwari Sengupta. She analyses the recent bankruptcy code released by the Finance Ministry. She figures how the code will lead to a jump in Doing Business Rankings. So there will be a dejure increase but what matters is the defacto outcome. At the end of the day, businesses should see the benefits not just the media: