Welcome to Applied Macroeconomic Centre

A theory is appropriate as long as it fits into the fact; when a theory doesn't fit in the fact, it's wise to walk with the fact.

Sunday, March 31, 2013

Profile of Christina Romer

IMF's Finance and Development profiles Christina Romer, Former Chair of the US Council of Economic Advisers.

Link of the Profile.

Wednesday, March 13, 2013

First Review of IMF on ECF

The IMF published its staff report for the first review under the three-year arrangement under the Extended Credit Facility along with Joint IMF-World Bank Debt Sustainability Analysis.

Friday, March 8, 2013

Vague monetary policy stance by BB?

Professor M A Taslim finds a misleading concept (so-called 'productive sectors') in BB's monetary policy statement while defending its rapid credit growth to the economy and its marginal impact on inflation development.The main argument pointed out by Professor Taslim is that 'if the economy is working at full capacity, a flow of additional credit to investment in 'productive sectors' will exert inflationary pressures as surely as additional credit spent on consumer goods'. Though he didn't provide any empirical evidence for his argument (except an US example in early 1900s), it is still a strong theoretical debate that requires further thought by the monetary authority. Hope, they feel it!

Link of the article.  

Wednesday, March 6, 2013

Finance & Development, March 2013

IMF publishes its Finance and Development, March 2013 edition.

Link for F&D.