Federal Reserve provides additional support

The Federal Reserve on Thursday, 9 April 2020, took additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic. Highlights: Continue reading “Federal Reserve provides additional support”


Noam Chomsky on the Covid-19 pandemic

Noam Chomsky, the 91 year old “father of modern linguistics”, is also a philosopher, historian, cognitive scientist, activist, and at times also a political activist. He has often held views that were off-beat reflecting his original thinking. He was at one time one of the ten most cited authors in the world, ranking alongside the Bible, Shakespeare, and Karl Marx. So, when he takes a stand, one takes note, whether one agrees or not. In this interview, and this, he blames the corona pandemic on market failures. Specifically, the market’s inability to invest in research and equipment that will not rake in profits even though they could have long term benefits to the community. And there is a lot of truth in what he says. Market failures mean the government and regulators need to step in and step up.

© G Sreekumar 2021

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Covid-19 pandemic and banking regulation

Tobias Adrian and Aditya Narain of the IMF, in their article titled “Maintaining Banking System Safety amid the COVID-19 Crisis” (31 March 2020), suggest how national band supervisors should respond to ensure continued trust and confidence in the banking system. Continue reading “Covid-19 pandemic and banking regulation”


Covid-19 pandemic: Dealing with the financial impact

Agustin Carstens, General Manager, Bank for International Settlements, in an op-ed piece in the Financial Times (30 March 2020), has raised concerns about the impact of the corona virus pandemic on global financial markets. Continue reading “Covid-19 pandemic: Dealing with the financial impact”


Reforming Deposit Insurance

This is an old article going back to 2000. It is a comment on the recommendations of the Committee on Deposit Insurance in India (Chairman: Jagdish Capoor, 2000). Continue reading “Reforming Deposit Insurance”


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 1/3rd and 2/3rd 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”


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