Archive for October 18th, 2021

Federal Reserve joins Central Bank Network for Indigenous Inclusion

October 18, 2021

Three Central banks – Australia, NZ and Canada- started a Central Bank Network for Indigenous Inclusion on Jan-21. The focus of the network was on:

    • Conducting research for and with Indigenous peoples on economic issues, including the development of best practices, such as using Indigenous data respectfully.
    • Building cultural awareness, recruitment practices and other aspects of corporate culture to foster Indigenous inclusion within member organisations.
    • Strengthening engagement practices with Indigenous groups and communities.
    • Supporting economic and financial education for and about Indigenous peoples.

In addition, the network will plan a recurring Central Bank Symposium on Indigenous Economics. The first symposium will be hosted by the Bank of Canada in late 2021.

Recently Federal Reserve has joined the network:

The Federal Reserve Board announced on Wednesday that it has joined the Central Bank Network for Indigenous Inclusion, which will foster ongoing dialogue, research, and education to raise awareness of economic and financial issues and opportunities around Indigenous economies.

The Board’s participation will be supported by the Center for Indian Country Development at the Federal Reserve Bank of Minneapolis and the Economic Education Partnership with Indian Country at the Federal Reserve Bank of St. Louis. The network is a collaboration with Te Pūtea Matua (the Reserve Bank of New Zealand), the Bank of Canada, and the Reserve Bank of Australia.

“The Federal Reserve Board is pleased to join the Central Bank Network for Indigenous Inclusion and I am personally looking forward to deepening our discussions with colleagues from around the world on economic issues that matter to Indigenous communities,” Governor Michelle W. Bowman said.

Inclusion and diversity are on top of central banks’ agenda..

IMF’s changing outlook on Indian economy

October 18, 2021

IMF’s outlook on Indian economy has gone through a sea change since the pandemic struck.

My review of this changing sentiment in Moneycontrol.

Introducing Market Design to students of Industrial Organisation

October 18, 2021

New NBER paper by Nikhil Agrawal and Eric Budish connects Market Design and IO:

This Handbook chapter seeks to introduce students and researchers of industrial organization (IO) to the field of market design. We emphasize two important points of connection between the IO and market design fields: a focus on market failures—both understanding sources of market failure and analyzing how to fix them—and an appreciation of institutional detail.

Section II reviews theory, focusing on introducing the theory of matching and assignment mechanisms to a broad audience. It introduces a novel “taxonomy” of market design problems, covers the key mechanisms and their properties, and emphasizes several points of connection to traditional economic theory involving prices and competitive equilibrium.

Section III reviews structural empirical methods that build on this theory. We describe how to estimate a workhorse random utility model under various data environments, ranging from data on reported preference data such as rank-order lists to data only on observed matches. These methods enable a quantification of trade-offs in designing markets and the effects of new market designs.

Section IV discusses a wide variety of applications. We organize this discussion into three broad aims of market design research: (i) diagnosing market failures; (ii) evaluating and comparing various market designs; (iii) proposing new, improved designs. A point of emphasis is that theoretical and empirical analysis have been highly complementary in this research.


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