PhD student in Economics. @NuffieldCollege @OxfordEconDept. Previously @lseecon and @lseechist. Interested in Macroeconomics, Finance and Development. 🇮🇳
Chennai and Oxford
Joined February 2019
- Tweets598
- Following1.6K
- Followers250
- Likes6K
Here is @R2Rsquared making this exact point a few months ago @Macro_Musings
Really enjoyed my trip to the @RBI’s Monetary museum. Gives a great glimpse of India’s monetary history right from the times of a commodity based standard for money, to gold and silver coinage all the way to banknotes, bills of exchange (and hundis!). A must visit!
From a fascinating field experiment by @suannaoh just published in the AER. Workers are willing to give up ten times their daily wage to avoid having to take on jobs with “lower caste” connotations in India. Has important implications for the shape of the sectoral labour supply
This would not pose a threat to financial stability in a world where QT is symmetric to QE. But, it is not! Periods of QT did not see a decline in claims on banks liquidity even as the net amount of liquidity in the system declined. Rajan calls this liquidity dependence 5/n
He then shows that commercial banks actively responded to increased liquidity provision by shrinking time deposits and increasing demand deposits. They become more willing to extend credit lines which further diminished liquidity. Most of this was uninsured. 3/n
Rajan first argues that Quantitative Easing (QE) in the US expanded not just central bank balance sheets but also commercial bank balance sheets. This was a direct consequence of secondary market intervention by the Federal Reserve in long-maturity bond markets. 2/n
It was a great pleasure to listen to Raghuram Rajan (Chicago Booth) deliver the Charles Goodhart lecture @FMG_LSE on the unintended financial instability consequences of Quantitative Tightening (QT). A short thread 1/n #EconTwitter
Interesting plot from the latest bi-monthly survey of household inflation expectations by the RBI. Households are systematically expecting higher price increases in future than they are experiencing currently despite the hawkish stance of the RBI.
