News
Entertainment
Science & Technology
Life
Culture & Art
Hobbies
News
Entertainment
Science & Technology
Culture & Art
Hobbies
Last year SEBI in its study showed that 9 out of 10 traders lose money in Future and Options trading. SEBI has now studied the trading in cash segment. It says 7 out of 10 traders lose money in cash segment. SEBI has conducted the study analysing the trends in participation and in profits and…
Bangko Sentral ng Pilipinas aka the Central Bank of Phillippines was established in 1949. The central bank is celebrating its 75 years. Governor Eli M Remolona, Jr. speaks on the occassion: Since then, the Central Bank and the Bangko Sentral ng Pilipinas have played a leading role in navigating the financial sector and the economy…
Laurence Bristow and Michael Tang in this Reserve Bank of Australia Bulletin article trace history of Australian Repo Market: In 2019, the repurchase agreement (repo) market became the second largest onshore short-term wholesale funding market in Australia. In addition to its size, the range of participants and diversity of collateral used to obtain funds under…
Matthias Fleckenstein & Francis Longstaff in this paper: We use the term structure of bank CD rates to examine whether maturity-transformation risk is priced into the rates banks offer customers. We find that depositors pay a significant cost for the liquidity provided by bank deposits. This cost is strongly related to the amount of maturity-transformation risk that…
Lars Syll on the Real World Economics Review Blog: The fallacy of composition basically consists of the false belief that the whole is nothing but the sum of its parts. In society and in the economy this is arguably not the case. An adequate analysis of society and economy a fortiori can’t proceed by just adding up the acts and…
Blume, a venture capital company has been releasing interesting annual reports titled Idus Valley Annual Report. Sajith Pai from Blume divided India as 3 Indias: India1, India2 and India3. It is based on Kishore Biyani's thoughts argued in his book. It has long been popular to refer to this segment as India One (or India1…
Lekha Chakraborty of NIPFP in this article analyses whether Bihar and Andhra should get Special Category Status. First what does SCS mean in terms of State finances: l What is the fiscal policy for states with this tag? FOR STATES ACCORDED the ‘Special Category Status’, under the 90:10 formula devised for devolution of funds for…
The news and discussion on electoral bonds has miraculosuly disappeared. Maitreesh Ghatak and Anirban Mukherjee in TheIndiaForum article discuss how electoral bonds served the incumbent parites and led to concentration of political power: In this essay, we will look at three issues based on a preliminary analysis of the data that has been made publicly…
A Teacher Writes to Students Series (25): Crony Capitalism and Kleptocracy By Annavajhula J C Bose, PhD Department of Economics, SRCC, DU Crony capitalism is about cemented ties between capital and state, which also turns out to be hyper by kleptocracy (thief rule/pillage), which “fosters unlimited grand corruption, ensuring near total impunity for those authorised…
Pablo Ottonello, Diego J. Perez & William Witheridge in this NBER paper: We study the role of exchange rates in industrial policy. We construct an open-economy macroeconomic framework with production externalities and show that the desirability of these policies critically depends on the dynamic patterns of externalities. When they are stronger in earlier stages of development, economies that…
Michael Kiley of Federal Reserve in this paper discuss why Treausry yields have fallen since 1980s: Treasury yields have fallen since the 1980s. Standard decompositions of Treasury yields into expected short-term interest rates and term premiums suggest term premiums account for much of the decline. In an alternative real-time decomposition, term premiums have fluctuated in…
Gong Cheng, Torsten Ehlers, Frank Packer and Yanzhe Xiao in this BIS paper: In traditional bond markets, sovereign bonds provide benchmarks and serve as catalysts for corporate bond market development. Contrary to the usual sequence of bond market development, sovereign issuers are latecomers to sustainable bond markets. Yet, our empirical study finds that sovereign green bond issuance can have…
Payal Ghose and Abhishek Date of CCIL review Muncipal Bond Market in India and way forward: India, the world's most populous nation, is witnessing rapid urbanization with the United Nations (UN) projecting the country's urban population to reach 675 million by 2035 . While India's bustling cities are a testament to its economic progress, this…
Hyman Minsky enters research on climate economics. Matthias Kaldorf and Matthias Rottner of Bundesbank in this paper discuss Climate Minsky moments: Does a shift to ambitious climate policy increase financial fragility? In this paper, we develop a quantitative macroeconomic model with carbon taxes and endogenous financial crises to study such ”Climate Minsky Moments”. By reducing…
I had posted on how Indian stock markets reacted to certain political party coming to power. How are US financial markets reacting/will react to Trump's reelection? Alessio Moro, Valerio Nispi Landi and Marco Albori in this voxeu research figure the answer to the question: Equity markets are already expecting an increase in volatility before the…
Cristian Alonso and Margaux MacDonald in a new IMF paper on India's sructural transformation: While India’s growth has been strong in recent decades, its structural transformation remains incomplete. In this paper, we first take stock of India’s growth to date. We find that economic activity has shifted from agriculture to services, but agriculture remains the…
Shruti Rajagopalan of IdeasofIndia Podcast has a superb podcast episode with Anne Krueger. Today my guest is Anne O Krueger. She is a Senior Fellow at the School of Advanced International Studies, Johns Hopkins University, and the Herald L. and Caroline Ritch Emeritus Professor of Sciences and Humanities in the Economics Department at Stanford University. She served World Bank’s…
Kartikeya Batra of University of Maryland has an interesting paper on how historical land policies in Uttar Preadesh explain the state of development in the State. He summarises the paper on IdeasforIndia with maps: Uttar Pradesh is characterised by significant intra-state variation in developmental outcomes, with research suggesting that this could be partially attributable to…
There are protests in Kenya over IMF's bailout. Prof Danny Bradlow of University of Pretoria explains: The recent Kenyan protests are a warning that the International Monetary Fund (IMF) is failing. The public does not think it is helping its member countries manage their economic and financial problems, which are being exacerbated by a rapidly…
Stephane Auray, Michael Devereux and Aurélien Eyquem on how mon policy can prevent trade wars: Trade wars can have large macroeconomic consequences, but there is limited focus on the interaction between optimal trade and macroeconomic policies. This column studies the optimal design of trade policies under different monetary policy rules. It finds that in a…
Alvin Christian, Matthew Ronfeldt & Basit Zafar in this new NBER paper nudge student interest in teaching: We survey undergraduate students at a large public university to understand the pecuniary and non-pecuniary factors driving their college major and career decisions with a focus on K-12 teaching. While the average student reports there is a 6% chance they will…
Julian Kikuchi writes on Milton Friedman's role as a public intellectual: Throughout his career, Friedman was an advocate for monetarism and free markets. He believed that a stable monetary framework, characterized by steady growth in the money supply, was essential for fostering economic stability and prosperity. Moreover, he considered free markets to be the best…
A Teacher Writes to Students Series (24): Rentier Capitalism By Annavajhula J C Bose, PhD Department of Economics, SRCC, DU You could be one among the many econ students I teach, who want to make money without productively working, egged on by personal finance gurus such as Robert Kiyosaki or Mehrab Irani. Such students aspire…
Lakhwinder Singh, Nirvikar Singh and Prakarsh Singh presented a paper at India Policy Forum hosted by NCAER. This paper assesses the state of Punjab’s economy, reasons for its current situation, prospects for growth, and policies to enable that growth. Punjab’s economy is characterized by slow growth, societal challenges, and environmental degradation. We identify four interrelated…
Jaedo Choi, Andrei A. Levchenko, Dimitrije Ruzic & Younghun Shim in this NBER paper: We quantify the contribution of the largest firms to South Korea's economic performance over the period 1972-2011. Using firm-level historical data, we document a novel fact: firm concentration rose substantially during the growth miracle period. To understand whether rising concentration contributed positively or negatively to…
The Adani-Hindenburg saga is like a slowburn webseries where the producers release episodes after long breaks. Though the webseries is a slowburn but still the audience keeps awaiting the new episode given the twists & turns. The new episode which was released recently has added a new twist to the webseries. Before discussing the new…
World Bank has released income classifications of members countries. Both Russia and Ukraine move higher in income classifications. Russia moves from Upper Middle Income to High Income and Ukraine from Lower Middle Income to Upper Middle Income. Eric Metreau, Kathryn Elizabeth Young and Shwetha Grace Eapen summarise the findings. Within countries, Russia reaches top rung…
Jonathan Reuter in this new NBER paper reviews literature on retirement plans: I review the academic literature on defined contribution retirement plan design and participant behavior. While adoption of automatic enrollment has significantly increased participation rates, recent studies find the long-run effects on savings are smaller than the short-run effects, with some savings financed via…
Prof Reetika Khera of IIT Delhi writes on the need to have more government canteens at the TheIndiaForum : Food canteens in cities offer affordable meals to many, especially marginalised groups without cooking facilities such as migrant workers. By enhancing menus, infrastructure, and staff wages, state governments can show political goodwill and also take ownership…
People Bank of China Governor Pan Gongsheng gives an interesting speech on Chinese monetary policy framework: Since the beginning of this year, the global inflation has started to cool down, but it is still strongly sticky. Some central banks such as the ECB have begun their rate cuts while some others are still observing the…
Czech Republic reduced its inflation from 18 percent to its target of 2 percent in a mere 2 years. The Central Bank obviously played the main role in achieving the target. What is also interesting is the central bank lowered inflation by not raising interest rates but letting exchange rates appreciate. My piece in Financial…
Rodolfo Campos, Benedikt Heid and Jacopo Timini study the economic consequences of geopolitical fragmentation by looking at evidence from the Cold War As the world grapples with signs of increasing geopolitical fragmentation, it is important to reflect on the lessons of the past. This column studies the economic impact of the Cold War, focusing on…
Claudio Borio reviews monetary policy lessons in 21st century in this paper: Since the turn of the 21st century, a series of extraordinary events – major financial crises, a pandemic and an unexpected surge in inflation – have profoundly shaped the conduct of monetary policy. This tumultuous experience points to several lessons regarding what monetary…
There are quite a few books which are written to introduce economics to people. Andrew Leigh's 'The Shortest History of Economics' is a worthy addition to the list of such 'Introduction to Economics' genre of books. This small book tells a big story. From ancient times to the modern world, The Shortest History of Economics unearths the…
Danilo Cascaldi-Garcia, Luca Guerrieri, Matteo Iacoviello, and Michele Modugno in this Fed paper: The aftermath of the COVID-19 pandemic saw a surge in inflation around the world, reflecting rapid increases in the demand for goods, strained supply chains, tight labor markets, and sharp hikes in commodity prices exacerbated by the Russian war on Ukraine. As…
After more than one and a half years of silence, we see some action. SEBI issued a showcause notice to Hindenburg on 26 June 2024 (which surprisingly was not uploaded on its website). Hindenburg has shared its response on its website. We have been aware that Indian securities regulator SEBI has been grappling with how…
Gaston Reinesch, governor of the Central Bank of Luxembourg, has been targeted by a deepfake video: Gaston Reinesch, governor of the Central Bank of Luxembourg, has been targeted by a deepfake video that advertises a get-rich-quick scheme, the central bank said on June 26. The video shows journalist Mariette Zenners from television network RTL describe…
Assaf Razin & Andrzej Cieslik compare impact of regime changes on FDI in Poland and Israel: This essay highlights the effects of radical transformations in the liberal characteristics of the regimes on foreign direct investors. To focus on the common patterns in the effects on foreign direct investment, of liberal vs. illiberal regime change, the essay spotlights…
Robert Flynn, Britta Glennon, Raviv Murciano-Goroff & Jiusi Xiao in this NBER paper point how the tensions between US-China has impacted scientific in the two countries: This paper examines the impact of rising U.S.-China geopolitical tensions on three main dimensions of science: STEM trainee mobility between these countries, usage of scientific works between scientists in each country, and scientist…