Archive for February 26th, 2024

RBI’s Financial Literacy Ideathon Competition

February 26, 2024

RBI is organising Financial Literacy Ideathon for Postgraduate students:

Reserve Bank of India (RBI) is observing the Financial Literacy Week (FLW) 2024 from February 26 to March 1, 2024 on the theme “Make a Right Start – Become Financially Smart”.  FLW has been observed every year since 2016 with the aim of promoting financial literacy.

The theme for this year, is targeted towards young adults, mainly students. The objective is to increase awareness on the advantages of inculcating financial discipline from an early age with inputs on saving, budgeting, power of compounding, banking essentials and cyber hygiene.

As part of FLW campaign of 2024, RBI is pleased to announce a Financial Literacy Ideathon, which is aimed at soliciting innovative ideas from postgraduate students, on creative strategies to propagate financial literacy among the youth so as to empower them to engage in responsible financial behaviour and take informed financial decisions.

The PG students are supposed to write an ideation paper, not exceeding 2000 words on the topic ‘Money Matters for Young Adults; Rethinking Outreach Strategies’. The entries can be submitted from February 26 – March 20, 2024.

More details here.

Posted in Central Banks / Monetary Policy, Indian Economy/Financial Markets | Leave a Comment »

What would you do if you found a mountain of gold and silver? Exorbitant privilege then and now

February 26, 2024

Nuno Palma  and Andre C. Silva in this voxeu research piece trace history of exorbitant privilege:

China’s foreign reserves totalled more than $3.3 trillion in 2022. This column turns to an event in the distant past to help explain these large reserves. Two shocks hit the world during the 1500s: a technological shock and a monetary shock. The technological shock was the decrease in trading costs obtained with new sea routes between Europe and Asia. The monetary shock was the discovery of vast reserves of gold and silver in America. What followed was the intensification of trade, an increase in imports of Asian goods by Europe, and reserve accumulation in Asia. Trade deficits with Asia and reserve accumulation are not a novelty; confidence in the dollar and in Treasury bills is the new mountain of gold and silver.

Posted in Academic research & research papers, Central Banks / Monetary Policy, Economics - macro, micro etc, Financial Markets/ Finance | Leave a Comment »

New Household Consumption Survey: High time we release new CPI data

February 26, 2024

The government released the highly awaited Household Consumption Expenditure Survey over the weekend.

My piece in moneycontrol on the findings and implications of the new survey.

Posted in Academic research & research papers, Indian Economy/Financial Markets | Leave a Comment »

A New Measure of Central Bank Independence

February 26, 2024

Tobias Adrian, Ashraf Khan and Lev Menand in this IMF paper present a new measure of central bank independence:

This paper constructs a new index for measuring de jure central bank independence, the first entirely new index in three decades. The index draws on a comprehensive dataset from the IMF’s Central Bank Legislation Database (CBLD) and Monetary Operations and Instruments Database (MOID) and weightings derived from a survey of 87 respondents, mostly consisting of central bank governors and general counsels.

It improves upon existing indices including the Cukierman, Webb, and Neyapti (CWN) index, which has been the de facto standard for measuring central bank independence since 1992, as well as recent extensions by Garriga (2016) and Romelli (2022). For example, it includes areas absent from the CWN index, such as board composition, financial independence, and budgetary independence.

It treats dimensions such as the status of the chief executive as composite metrics to prevent overstating the independence of statutory schemes. It distills ten key metrics, simplifying current frameworks that now include upwards of forty distinct variables. And it replaces the subjective weighting systems relied on in the existing literature with an empirically grounded alternative.

This paper presents the key features of the new index; a companion, forthcoming paper will provide detailed findings by country/region, income level, and exchange rate regime.

Posted in Academic research & research papers, Central Banks / Monetary Policy | Leave a Comment »

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