Rethinking the Statutory Liquidity Ratio (SLR) in Indian banking

by Harsh Vardhan.

The CEO of a leading bank recently caused a flutter in the banking community by demanding the abolition of the Cash Reserve Ratio (CRR). RBI has promptly appointed a committee to look at this issue. The reserve ratios, CRR and SLR (Statutory Liquidity Reserve), are an important feature of Indian banking . . . → Read More: Rethinking the Statutory Liquidity Ratio (SLR) in Indian banking

Monetary vs. Fiscal Policy

Brad DeLong

University of California (Berkeley) economist Brad DeLong took my late-in-life education on economic issues to a new level. I’ve plenty more to learn, of course, but I enjoyed his discussion.

Here’s a snippet from his article in the Seeking Alpha web site:

In such a setup, the conclusion of Mankiw and . . . → Read More: Monetary vs. Fiscal Policy

Does Unconventional Monetary Policy and Unusual Fiscal Policy Presage an Upsurge in Inflation?

Unconventional monetary policy

Central banks worldwide have gone into `unconventional monetary policy’ owing to policy rates having hit the zero interest rate bound, and owing to the difficulties in finance which have impeded the monetary policy transmission. This has involved dramatic increases in money supply, purchases by central banks of government bonds and corporate . . . → Read More: Does Unconventional Monetary Policy and Unusual Fiscal Policy Presage an Upsurge in Inflation?

The Distortionary Effects of Monetary Inflation

One of the many demonstrably false myths of the official state religion — and by that I mean Keynesian economics — is the notion that we can have perpetual inflation at a “reasonable level” with no adverse affects. In this blog entry, I’ll demonstrate why this is indeed a myth.

Certain types of businesses . . . → Read More: The Distortionary Effects of Monetary Inflation

Obama’s Economic Team – Will They Get It?

Today, Barrack Obama announced the core of his economic team.  Timothy Geithner will lead Treasury, Larry Summers will head the National Economic Council, and Christina Romer will chair the Council of Economic Advisers.  In his news conference, President-elect Obama stated that they would “do whatever it takes” to pull the US economy out of its . . . → Read More: Obama’s Economic Team – Will They Get It?