The hype and tamasha around the right growth model used in India’s States keeps growing. Each economist is there to outdo the other. We have heard stories on Gujarat (of course), Chattisgarh, Madhya Pradesh, Kerala etc etc.
Prof. Arvind Panagariya whose focus so far was on Gujarat has now shifted focus on Rajasthan. I just noted from the article that he has been appointed as vice-chair of Rajasthan Chief Minister’s Economic Advisory Council. So some backing and branding is expected.
Draghi has empirical evidence. He has been saying how OMT has been useful in reducing spreads of effected economies. But like lawyers econs say where is the evidence? I mean it is much like a murder committed by an obvious person, but we just want an empirical paper saying it all.
WSJ Blog pointed to this ECB paper which says OMT reduced spreads in Italy and Spain by 200 bps. And what better proof of power of central banks and their communications than this. Not a euro spent and look at the effect:
I have been really confused ever since the phrase of smart city came up in the budget.
Three articles have tried to look at the idea:
An interesting speech from ECB chief Mario Draghi on central bank communications and challenges for ECB.
First why do central banks communicate so much these days? Just to keep giving cheap dope to financial markets:
https://www.intelligenteconomist.com/economics-blogs/
Mostly Economics 