Covid-19 Archives - Lion and Palm Tree

Why People Wore Masks

An overview of research findings explaining mask compliance across countries

Social distancing and mask compliance — Photo by Maxime on Unsplash

Introduction

According to Francis Fukuyama, leading political thinker, institutional arrangements, including increasing judicialisation and influence of interest groups, constrict decision making in democracies. These along with legally mandated checks and balances can slow decision making in crises. Fukuyama was writing in the US context (The Origins of Political Order, 2011; Political Order and Political Decay, 2014). But, India too is no exception. This perhaps explains the need for seemingly autocratic decisions. Whatever be the method, public view and experience of governmental decisions, through law or regulation, are manifested in compliance. Continue reading “Why People Wore Masks”

Jackson Hole Symposium 2021

If the US pullout from Afghanistan signalled its disinclination to be the policeman of the world at the cost of its men and money, this year’s Jackson Hole Symposium and Chairman Powell’s address mark a no less strong aversion to being the central banker of the world. That it came in the 50th anniversary month of President Nixon snapping dollar convertibility into gold is particularly apt. This post is an overview of some of the presentations held at Jackson Hole Symposium 2021. Continue reading “Jackson Hole Symposium 2021”

100 years of the South African Reserve Bank

Background

There are two reasons why I am celebrating the centenary of the South African Reserve Bank (SARB). First, I learnt my first lessons in central banking as an undergraduate in 1978 from the classic book on central banking by M.H. de Kock (see here). A legendary and longest serving Governor of the SARB, de Kock’s book went into four editions in his lifetime. It was also popular across the world. References to the Bank and its history were therefore inevitable in my lectures on central banking over the years. Continue reading “100 years of the South African Reserve Bank”

Andrew Bailey at Jackson Hole

Central bank balance sheet as a policy tool: past, present and future

Mr. Andrew Bailey, Governor, Bank of England, delivered the opening remarks on the second day of the Kansas City Fed’s annual Jackson Hole Symposium, on 28 August 2020. He spoke on “Central bank balance sheet as a policy tool: past, present and future”, based on a paper (see here) with the same title, prepared jointly with Jonathan Bridges, Richard Harrison, Josh Jones and Aakash Mankodi. Continue reading “Andrew Bailey at Jackson Hole”

IMF’s Central Bank Transparency Code

When increased independence was being given to central banks across the world, especially in their conduct of monetary policy, and in countries implementing an inflation targeting framework, a key element was greater accountability of central banks, in which transparency and appropriate disclosures had a very important role. Transparency refers to the flow and accessibility of information from the central bank to its stakeholders and the public. They rely on that information to inform their judgment of the performance of the central bank and compliance with the central bank’s mandate. Transparency is also a key plank in the central bank’s broader governance and accountability framework. Continue reading “IMF’s Central Bank Transparency Code”

Covid-19: An induced coma for the global economy

Speaking at the UBS High-level Discussion on the Economic and Monetary Policy Outlook, held in Zurich on 27 May 2020, Agustín Carstens, General Manager, Bank for International Settlements, discussed the economic impact of Covid-19, and policy response of advanced economies’ central banks. Continue reading “Covid-19: An induced coma for the global economy”

Carmen Reinhart at the World Bank

The World Bank has appointed Carmen Reinhart as its new Vice President and Chief Economist, effective from 15 June 2020. Announcing the decision, David Malpass, World Bank Group President said, “Carmen has dedicated her career to understanding and surmounting financial crises in both advanced and developing economies in order to achieve growth and higher living standards. Her thought leadership during this unprecedented period will be invaluable to the Bank Group and our clients.” Continue reading “Carmen Reinhart at the World Bank”

CLOs: Stress points in times of Covid-19

Joe Rennison and Robert Smith report in today’s Financial Times (14 May 2020) that the Collateralised Loan Obligations (CLO) which have been booming and has helped the rise of private equity, could become vulnerable if the level of corporate defaults rise in the current context of Covid-19 pandemic. Continue reading “CLOs: Stress points in times of Covid-19”

Philip Lowe on Australia’s response to the pandemic

Philip Lowe, Governor of Reserve Bank of Australia since 2016, in his speech on 24 April 2020, gave an update on the economic and financial condition in Australia in the context of the Covid-19 pandemic. Continue reading “Philip Lowe on Australia’s response to the pandemic”

Stephen S. Poloz on the “Teachable moments” from the pandemic

Stephen S. Poloz, Governor of Bank of Canada since 2013, stated in his speech on 4 May 2020 that the pandemic offers a “teachable moment”. He lists the following as lessons for central banking from this teachable moment: Continue reading “Stephen S. Poloz on the “Teachable moments” from the pandemic”