Community Currencies…….

Jamal Mecklai book review throws some new coins “there is a very interesting section on the QQ, a new Chinese coin created by online marketers, which has already moved into the real world. The second is a brief mention of Community Currencies, which, in many senses, are a reactionary response to globalisation.”

Lip service is a currency!

What if the dollar were no longer the reserve currency? 

Mr S L Rao has his own unbalanced understanding of dominate currency even with other issues. One reason seems to me that it is invariable among Indian economists expects some like B R Shenoy.

Is $US is ugly

Is it really the $US is ugly in the world, may be or may not be so. May be because it is called in fact used as “the dollar is the international reserve currency” and “this is the root cause of our present problems” if it is may not be because “during the past few years was built on loose US monetary policy that kept interest rates unrealistically low and allowed US consumers to live beyond their means”.

Read more “The good, the abd and the ugly” by Mythili Bhusnurmath an Economic Times Columns.

India’s Macro Manipulation

Economist Dr Subroto Ro writes in Business standard “India has followed in peacetime over six decades what the US and Britain followed during war. Our vast growth of bank deposits in recent decades has been mostly a paper (or nominal) phenomenon caused by unlimited deficit finance in a fractional reserve banking system. Policy makers have widely misinterpreted it as indicating a real phenomenon of incredibly high savings behaviour. In an inflationary environment, people save their wealth less as paper deposits than as real assets like land, cattle, buildings, machinery, food stocks, jewellery etc”.

It is also quite interesting to note the India’s money, income and prices situation since 1935-2008.

If you see the second graph growth of money supply exceeds both growth of wholesale prices and the real income.