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Is bitcoin a new financial order or libertarian dystopia? An Answer from Free Banking in Scotland 1727-1845 | Mostly Economics
Francesco Maria Giacomini and Marco Rossi in this paper compares bitcoin to Scottish banking history : This research debunks the myth of Bitcoin as a new financial order by using a historical example. The 2008 financial crisis sparked many doubts over the role of central banks, renewing libertarians' argument for a decentralised system of money…
The History of Economic Thought as a Living Laboratory | Mostly Economics
Matthew McCaffrey, Joseph T. Salerno and Carmen-Elena Dorobat propose a new way to being HET back to classrooms: Historians of economic thought are usually keen to demonstrate the value of their field to the broader economics profession and to argue for returning it to a prominent place in economics teaching and research. Despite valiant efforts…
Parliamentary Debates on 75th anniversary of Constitution: Watch Shyram Benegal’s Samvidhaan instead | Mostly Economics
Watching and hearing the Parliamentary Debates on 75th anniversary of Constitution is depressing. There is just nothing except mudslinging and shaming leaders of the past. There is just no interest in the present and the future of the country and its citizens. It is much better to either read the debates of 1940s which led…
Using Generative AI Models to Understand FOMC Monetary Policy Discussions | Mostly Economics
Wendy Dunn, Ellen E. Meade, Nitish Ranjan Sinha, and Raakin Kabir in this Fed research: In an era increasingly shaped by artificial intelligence (AI), the public's understanding of economic policy may be filtered through the lens of generative AI models (also called large language models or LLMs). Generative AI models offer the promise of quickly…
Profile of Indonesia’s finance minister Sri Mulyani Indrawati | Mostly Economics
IMF Finance and Development Magazine profiles Sri Mulyani Indrawati, Indonesia's Finance Minister: Over the past two decades, Indonesia has undergone a remarkable transformation. The Southeast Asian nation—a sprawling archipelago of 270 million people, stretching 3,300 miles from west to east, about the same distance as London to Kabul—has increased its GDP fourfold, to $1.4 trillion.…
Central bank digital currencies and fast payment systems: rivals or partners? | Mostly Economics
Team of BIS economists (Jose Aurazo, Holti Banka, Jon Frost, Anneke Kosse and Thomas Piveteau) in this research: Retail central bank digital currencies (CBDCs) and fast payment systems (FPS) share a number of similarities. Both allow for instant transactions for end users, can rely on underlying infrastructures operated by the central bank and can allow…
The increasing cost of buying American | Mostly Economics
Matilde Bombardini, Andres Gonzalez-Lira, Bingjing Li and Chiara Motta in this voxeu article: ‘Buy national’ provisions serve as non-tariff barriers to trade and are often defended as tools for job creation and industrial policy. This column examines the costs and benefits of current and anticipated future provisions under the Buy American Act of 1933, which…
Amiya Kumar Bagchi: A People-Centric Intellectual Journey | Mostly Economics
Achin Chakraborty of Institute of Development Studies Kolkata pays tribute to Prof Bagchi in TheIndiaForum: Bagchi characterises the emergence and operation of capitalism as a system driven by wars over resources and markets rather than one that genuinely operates on the principle of free markets. It comprehensively counters the view that developed countries provide the…
New Frontiers in Economic Research | Mostly Economics
RBI Deputy Governor Michael Patra discusses new frontiers in economic research in this speech: Economic inquiry is characterised as the spirit of exploration in a continual quest to understand the invisible hand that transforms livelihoods, shapes societies, and defines humanity’s aspirations. In that sense, economists have always been cartographers of unyielding trade-offs and impossible trinities…
A Teacher Writes to Students Series (34): Difficult Problems, Impossible Solutions | Mostly Economics
A Teacher Writes to Students Series (34): Difficult Problems, Impossible Solutions Annavajhula J.C. Bose, PhD Department of Economics (Retd.), SRCC, DU On the one hand, students are told to acquire employability skills by way of leadership skills including problem-solving skills (critical analysis, communication, emotional intelligence, resilience, creativity, adaptability, and teamwork). On the other, there are…
Knowledge Suppression and Resilience under Censorship: Three-century Book Publications in China | Mostly Economics
Ying Bai, Ruixue Jia & Jiaojiao Yang in this NBER article analyse impact of knowledge suppression by the State: This study examines the short-, medium-, and long-term impacts of state censorship on knowledge production, focusing on the largest book-banning campaign in Chinese history, initiated during the compilation of the 'Siku Quanshu' (Complete Library in Four Sections) between 1772…
Profile of Anne Case: The Longevity Economist | Mostly Economics
IMF Finance and Development profiles Anne Case, the economist who studies human longevity: For decade after decade in the United States, children typically stayed healthier and lived longer than the generation that came before them. The country, it seemed to Anne Case, had been doing something right. By the late 1960s, advances in vaccines and antibiotics had…
The works of Ha-Joon Chang: A summary | Mostly Economics
Junaid Jahangir of MacEwan University, Canada summarises works of Ha-Joon Chang in Real World Economics Review: Over the last 20 years, Ha-Joon Chang has weaved a consistent narrative in popular books from Kicking Away the Ladder in 2002 to Edible Economics in 2022. His body of work challenges the narrative in mainstream textbook economics. While…
Why ruling parties were defeated in US and Japanese elections? | Mostly Economics
Richard Koo offers lessons from the recent elections: Big political changes are afoot in Japan, the US, and Europe. The US and Japan held national elections in the past few weeks, and in both cases the ruling party suffered a major defeat, creating heavy uncertainty over economic policy. In Germany, meanwhile, the withdrawal of the…
Large language models: a primer for economists | Mostly Economics
Byeungchun Kwon, Taejin Park, Fernando Perez-Cruz and Phurichai Rungcharoenkitkul in this article provide a primer for economists on LLMs: Large language models (LLMs) are powerful tools for analysing textual data, with substantial untapped potential in economic and central banking applications. Vast archives of text, including policy statements, financial reports and news, offer rich opportunities for…
Fed Rate Adjustments: Historical Context and Impact on Indian Market | Mostly Economics
Akash Supare of Clearing Corporation of India Limited in this research article track changes in Fed Funds Rate and its impact on Indian markets: The federal funds rate is a cornerstone of U.S. monetary policy and plays a crucial role in shaping economic activity both domestically and globally. Set by the Federal Open Market Committee…
Shaktikanta Das: A left-field Governor’s rollercoaster tenure | Mostly Economics
Till yesterday evening, it was widely expected thta Shaktikanta Das will get another term as RBI Governor. Then suddenly late evening, the Government announced appointment of Sanjay Malhotra as the 26th Governor of RBI. My piece in Moneycontrol on Shaktikanta Das's Governorship. It was quite a rollercoaster ride!
What can US learn from Latin America’s economic experiences? | Mostly Economics
Who could have imagined this question: What can US learn from Latin America's economic experiences? After all Latin America has had such painful economic experiences that what lessons can it offer that too to US economy? But such are times that Latin America also has lessons for US economy. Laura Alfaro of Harvard Business School who…
Experiencing natural disasters increases partisan disagreement on climate change | Mostly Economics
Milena Djourelova, Ruben Durante, Elliot Motte and Eleonora Patacchini argue how natural disasters deepens divides: As climate-related disasters become increasingly frequent and destructive, one might expect first-hand experience of these events to bring consensus on the urgency of addressing climate change. Yet, the deep ideological divide on this issue in the US and beyond –…
RBI to start its podcast | Mostly Economics
RBI announced starting a podcast: 6. Introduction of Podcast facility as an additional medium of communication The Reserve Bank of India has been deploying traditional as well as new age communication techniques as a key part of its toolkit to ensure transparency and greater impact of its decisions, explain the rationale behind its decisions, and…
When Uncle Sam Watched Rosie’s Kids | Mostly Economics
When Uncle Sam Watched Rosie's Kids is an interesting title for a temporary nationwide child care program funded by the U.S. government during WWII. To support women working on the homefront in World War II, the U.S. government funded a temporary nationwide child care program. In this interesting Richmond Fed article, Tim Sablik reviews the history…
The Value of Money: A Survey of Heterodox Approaches | Mostly Economics
L. Randall Wray in this paper reviews hetedox approaches on money: This paper examines heterodox theories of the determinants of the value of money. Orthodox approaches that tie money’s value to relative scarcity of money or to the price level are rejected as inconsistent with the monetary theory of production embraced by heterodox traditions linked…
What roles should the Private Sector and the Federal Reserve Play in payments? Lessons from US History | Mostly Economics
Christopher Waller of Federal Reserve in this speech discusses whether Federal Reserve shoud intervene in payments: The key question I want to address today is, what roles should the private sector and the Federal Reserve play in payments? As a strong believer in the benefits of a capitalist system, I hold the view that it…
Reviewing the role of Reichsbank in Nazi era | Mostly Economics
I had pointed earlier that Bundesbank has undertaken a project in 2017 to review the role of Reichsbank in Nazi era. The Bank released its report in March 2024 but the report was not put on the website. The report has now been put on the website. It is gut wrenching to read about how…
East Caribbean Central Bank’s $2 banknote: Features fecund reefs and Viv Richards | Mostly Economics
Salsa Mazlan of IMF reviews the new East Caribbean $2 banknote: Sea turtles and brightly colored tropical fish circle coral reefs and conch shells while cricketing great Sir Viv Richards pulls a loose delivery away to the boundary. The Eastern Caribbean Central Bank’s (ECCB’s) striking new $2 banknote is a celebration of the islands’ marine life and sporting…
The End of Oil | Mostly Economics
Ryan Kellogg explores the world without oil: It is now plausible to envision scenarios in which global demand for crude oil falls to essentially zero by the end of this century, driven by improvements in clean energy technologies, adoption of stringent climate policies, or both. This paper asks what such a demand decline, when anticipated,…
How Climate Change Is Fueling the Dzud Crisis in Mongolia | Mostly Economics
Asiapathwaysm blog of Asian Development Bank has this worrisome post about Dzud events in Mongolia: Dzud events come in several forms, each posing a unique challenge. A “white dzud” involves deep, suffocating snow that buries pastures, starving livestock as they struggle to find food. A “black dzud,” in contrast, occurs after a dry summer, leaving…
FinTech Lending to Borrowers with No Credit History | Mostly Economics
Laura Chioda, Paul Gertler, Sean Higgins & Paolina C. Medina in this NBER paper discuss fintech lending to borrowers with no credit history: Despite the promise of FinTech lending to expand access to credit to populations without a formal credit history, FinTech lenders primarily lend to applicants with a formal credit history and rely on…
The impact of the Chinese Exclusion Act on the economic development of the Western US | Mostly Economics
Carlo Medici, Nancy Qian and Marco Tabellini in this timely research: Immigration is one of today’s most controversial policy issues. A recurrent concern is that immigrants are taking the jobs of native workers, leading many governments to consider restrictions and even deportations. This column examines the impact of the 1882 Chinese Exclusion Act, which effectively…
Italy’s long-term economic performance: New GDP estimates since the Middle Ages | Mostly Economics
Giovanni Federico, Alessandro Nuvolari, Leonardo Ridolfi and Michelangelo Vasta in this voxeu research: There is a lively debate around the long-run performance of Italy since the Middle Ages. This column introduces new estimates of Italy's GDP per capita from 1300 to 1861. The estimates are constructed using the demand-side approach and are based on nearly…
Asphyxiation by Sanctions: Harm, Fear and Smog | Mostly Economics
Urjit Patel, Chairperson of NIPFP has written a paper on economic sanctions: The current century has witnessed a deluge of economic sanctions, with the attendant entropy. Formal empirical findings of researchers suggest that sanctions have been, for the most part, inefficacious in realising the diplomatic objectives of sanctioners. The lens through which the broader subject…
Inequalities are at the core of the monstrous dramas that are unfolding in front of us today | Mostly Economics
Amitav Ghosh's acceptance speech on acceptance of the Erasmus Prize: We are, in other words, in a moment of multiple intersecting crises and transitions – of geopolitics, financial structures, and, perhaps most importantly, of environmental and ecological regimes that are slowly but surely pushing the planet towards catastrophe. No wonder then that one of the…
Rest in Peace Prof Amiya Kumar Bagchi | Mostly Economics
What a sad day! Prof Amiya Kumar Bagchi is no more. I learnt so much about researching and writing on banking history from him and Dr Thingalaya (who passed away in 2019). Prof Bagchi's work on SBI's history is one of its kind: detailed and thorough. He explained the pains he had to undertake to do…
A decade of low interest rates: impact on profitability of Swiss banks | Mostly Economics
Jayson Danton and Terhi Jokipii in this SNB paper: We analyse the impact of interest rates on Swiss banks' profitability. Our assessment is based on annual data on individual bank balance sheets and income statements in a standard panel regression setting for a sample of domestically focused commercial banks. We find that net interest rate…
Civil society, beyond markets and states: Tracking 100 years of economic research | Mostly Economics
Samuel Bowles, Wendy Carlin and Sahana Subramanyam in this voxeu research track 100 years of economic research: Commentary on the 2024 US elections included the Democratic Party’s failure to connect with issues of community, place, family, religion, and identity. This column presents evidence from research papers published in the top economics journals since 1900 showing…
100 years of NY Fed at Liberty Street: Understanding changes in technology | Mostly Economics
New York Federal Reserve has completed 110 years of its existence (basically entire Federal Reserve System) and 100 years at its Liberty John Williams , President of NY Fed reflects in this speech: It’s wonderful to see so many of our alumni joining us today as we celebrate the 110th anniversary of the New York…
Humpty Dumpty and Indian Business | Mostly Economics
As one is watching the comedies and tragedies unfold in the India business story, one nursery rhyme comes to mind: Humpty Dumpty sat on a wall. Humpty Dumpty had a great fall. All the king's horses and all the king's men Couldn't put Humpty together again. Who could have imagined, that a nursery rhyme written…
The Swiss repo market at 25 – a success story for the financial centre and the Swiss National Bank | Mostly Economics
I wrote this piece in Financial Express on 25 years of Humble Repo in India. Humble Repo completes 25 years in Switzerland too! Petra Tschudin and Thomas Moser of SNB in this speech: This year we are celebrating something very special: the 25th anniversary of the Swiss franc repo market. In June 1999, the Swiss National…
The Economics of Net Zero Banking | Mostly Economics
Adair Morse & Parinitha Sastry in this paper discuss the impact of net zero path on banking: Banks have voluntarily committed to align their lending portfolios with a net zero path toward a decarbonized economy. In this review, we explore the economic channels for why portfolio decarbonization might be consistent with lender profit maximization. We frame the…