History Archives - Lion and Palm Tree

Bank of Russia in War and Peace

How Bank of Russia and Russian Central Banking is coping with war and other political expediencies

Central Bank of Russian Federation Head Office building — Bank of Russia

War and Peace

War and Peace, Tolstoy’s enduring masterpiece, starts with a party scene. Set in the St Petersburg of 1805, the main characters are introduced here. Most of us would have read the ‘novel’ (Tolstoy did not call it one) in English. Lost in translation is the fact that almost the entire conversation, page after page, is in French. It was the preferred language of the Russian aristocracy. For Tolstoy, it was a literary device. He was making fun of the nobles of the day who spoke French to flaunt their exclusivity. He wanted to show how disconnected they were from core Russian values and the world around. Continue reading “Bank of Russia in War and Peace”

Best Books on Keynes

No other economist would have probably had more books written on his life than John Maynard Keynes. I am currently reading, slipping in time whenever I can, a recent book by Zachary D. Carter, “The Price of Peace: Money, Democracy, and the Life of John Maynard Keynes” (Random House, New York, 2020). I hope to able to write a brief review of the book soon. Continue reading “Best Books on Keynes”

25 years after Barings: Have the lessons been learnt?

“Around the World in 80 Days” by Jules Verne

(Note: A much shorter version of this article appeared in Mint dated 13 July 2020. You can read it here.)

In 1872, when Phileas Fogg, Jules Verne’s enigmatic character, wagered with his whist partners at the Reform Club, including an Assistant Governor of the Bank of England, to travel round the world in eighty days, he issued a cheque for £20,000, drawn on Baring Brothers. That was security enough. That was the standing of Baring Brothers, which always paid his cheques “on sight and his account remained invariably in the black.” Moreover, he was accepted as a member of that distinguished society on the recommendation of Baring Brothers with whom he had an unlimited overdraft limit. Continue reading “25 years after Barings: Have the lessons been learnt?”

Separating Banking Supervision

In this article, published in 1998, I argued that there is no evidence to suggest that separation of banking supervision from central banks will enhance the effectiveness of either supervision or monetary policy. On the contrary, it could be detrimental to both. The article was published in the Op-Ed page of Economic Times dated 5 October 1998. Continue reading “Separating Banking Supervision”

Lion and Palm Tree: The Title

The title, lion and palm tree, is based on the design used by the East India Company for its single and double mohur coins. The Company issued coins in gold, silver, copper, and even tin. The gold coins were known as mohurs and were not legal tender. These were issued in one-mohur and two-mohur denominations valued at Rs. 15 and Rs. 30 respectively. The relevant Act of 1835 also authorised issue of 1/3^rd and 2/3^rd mohurs of value Rs. 5 and 10 respectively, though I am not sure whether these were actually issued. These single and double mohur coins, first issued in 1835, had the image of King William IIII on the observe and the design of lion and palm tree on the reverse. Continue reading “Lion and Palm Tree: The Title”