To steer their policies, central banks are embracing unorthodox models that use “heterogeneous agents” unlike the “representative-agent New Keynesian” model. They also now have various tools to select from. Some purchase shares in companies, which are predominantly held by the rich. Others offer more affordable financing to banks that extend loans to smaller entities. Every tool will play a unique role in enhancing aggregate demand and the distribution of income.
Digital money. A force to reckon with?
In a recent IMF article, Tobias Adrian and Tommaso Mancini-Griffoli, argue that digital money has the potential to transform the financial sector, and that emerging markets and lower-income countries stand to gain the most from this dramatic shift. Broad and inexpensive access to digital money and phone-based transactions could open the door to financial services… Continue reading Digital money. A force to reckon with?
Consumer credit demand Versus supply during the pandemic
It is common during recessions to observe significant slowdowns in credit flows to consumers. It is more difficult to establish how much of these declines are the consequence of a decrease in credit demand versus a tightening in supply. According to Jessica Lu, a senior research analyst at the New York Fed, Liberty Street Economics… Continue reading Consumer credit demand Versus supply during the pandemic
Could the current low rates of borrowing lead to unsustainable debt in future?
Many countries are experiencing a combination of high public debt and low interest rates. This was already the case in advanced economies even prior to the pandemic but has become even starker in its aftermath. A growing number of emerging market and developing economies are likewise enjoying a period of negative real rates – the… Continue reading Could the current low rates of borrowing lead to unsustainable debt in future?
Leverage; a double-edged sword?
Leverage, the ability to borrow, is a double-edged sword. It can boost economic growth by allowing firms to invest in machinery to expand their scale of production, or by allowing people to purchase homes and cars or invest in education. During economic crises, it can play a particularly important role by providing a bridge to… Continue reading Leverage; a double-edged sword?
Informality in the global Economy
According to the International Labor Organization, about 2 billion workers, or 60 percent of the world’s employed population ages 15 and older, spend at least part of their time in the informal sector. The size of the informal sector slowly decreases as economies develop, but with wide variations across regions and countries. Today, the informal… Continue reading Informality in the global Economy
Are digital payments the key to fostering economic activity in Africa?
Africa has undergone a remarkable journey over the past 30 years. It has not only leapfrogged legacy technology and systems into a more relevant future, but it has done so in spite of challenging circumstances. This is particularly relevant when it comes to mobile – the technology, the connectivity, and the financial inclusion.
How Do Consumers Believe the Pandemic Will Affect the Economy and Their Households? — Liberty Street Economics
Olivier Armantier, Leo Goldman, Gizem Koşar, Jessica Lu, Rachel Pomerantz, and Wilbert van der Klaauw In this post we analyze consumer beliefs about the duration of the economic impact of the pandemic and present new evidence on their expected spending, income, debt delinquency, and employment outcomes, conditional on different scenarios for the future path of the…How Do… Continue reading How Do Consumers Believe the Pandemic Will Affect the Economy and Their Households? — Liberty Street Economics
Is Monetary Union feasible for East Africa?
The protocol for the establishment of the EAC Monetary Union was signed by the heads of state in Kampala on November 30, 2013, providing a 10-year roadmap for member states to embrace a single currency regime. How far has the East African Community gone in achieving this?
Stop Waiting for Inspiration — Cristian Mihai
Haruki Murakami is one of the most celebrated authors of our time. He is also a man of tremendous focus and discipline. He wakes up at 4 a.m. and writes for 5 or so hours. Every single day. Kurt Vonnegut would wake up at 5:30 a.m. work until 8 a.m., eat breakfast, and then work […]… Continue reading Stop Waiting for Inspiration — Cristian Mihai
A New International Development Paradigm?
The Sustainable Dev't Goals (SDGs) set by the UN are considered a universal benchmark for development around the world. But, is it realistic to have such a benchmark for countries/regions whose societies are structured within different local contexts? Join me here in a Panel discussion with Q&A session as I interrogate this issue alongside a… Continue reading A New International Development Paradigm?
The Beauty of Doing What You Can With What You Have
Some five hundred years ago, a 26 year old sculptor was given the task of turning a leftover slab of marble into a work of art. Other artists had tried to give life to the stone and had failed, but the young artist took on the contract, determined to shape the marble that others had […]… Continue reading The Beauty of Doing What You Can With What You Have
Limited access to Internet driving inequality
COVID-19 and the Great Lockdown triggered a mass migration from analog to digital and highlighted that access to the Internet is crucial for socio-economic inclusion. High-speed Internet is key for working from home, for children’s education when they can’t attend school in person, for telemedicine, for benefiting from social support programs, and for enabling access… Continue reading Limited access to Internet driving inequality
Leverage Ratio Arbitrage All Over Again — Liberty Street Economics
Donald P. Morgan, Dong Beom Choi, and Michael R. Holcomb Leverage limits as a form of capital regulation have a well-known, potential bug: If banks can’t lever returns as desired, they can boost returns on equity by shifting toward riskier, higher yielding assets. That reach for yield is the leverage rule “arbitrage.” But would banks… via… Continue reading Leverage Ratio Arbitrage All Over Again — Liberty Street Economics
Empathy
We want people to feel with us more than act for us. The race of mankind would perish did they cease to aid each other. We cannot exist without mutual help. ~ Thanks for reading, until next time...
Putting Values over Valuation
In recent years the market economy has become the market society. However, Coronavirus could reverse that trend, says Mark Carney, the former governor of the Bank of England. Value will change in the post-COVID world. On one level, that’s obvious: valuations in global financial markets have imploded, with many suffering their sharpest declines in decades.… Continue reading Putting Values over Valuation
Bank of Uganda cuts CBR to a record low of 8% amidst Coronavirus
“Bank of Uganda has today, April 6th, 2020, in the April 2020 Monetary Policy Committee (MPC) meeting reduced the Central Bank Rate (CBR) by 1 percentage point to 8 percent. The COVID-19 pandemic has led to a severe contraction in economic activity due to a combination of global supply chain disruptions, travel restrictions, measures to… Continue reading Bank of Uganda cuts CBR to a record low of 8% amidst Coronavirus
Impact of coronavirus in East Africa
The confirmation of multiple cases of Coronavirus in East Africa should be a wake-up call for a coordinated response to the disease across the region. In light of the weaknesses of our economies and the dismal capacities of our health systems, the expanded travel bans announced this week make sense. China’s experience has demonstrated that… Continue reading Impact of coronavirus in East Africa
Debt Crisis in Africa?
There is renewed concern about the sustainability of rising debt levels in many African countries. Much of this debt is being incurred through foreign currency denominated Eurobonds issued on international financial markets. The total value of Eurobonds issued between 2018 and 2019 was more than that of bonds sold from 2003 to 2016. The International… Continue reading Debt Crisis in Africa?
Authentic Change
Change_authentic change comes from the insideout. It doesn't come from hacking at the leaves of attitude and behaviour with quickfix personality techniques. It comes from striking at the root - the fabric of our thought, the fundamental, essential paradigms, which give definition to our character and create the lens through which we see the world.… Continue reading Authentic Change
Gratitude
Gratitude, thankfulness, gratefulness; the quality of being thankful; readiness to show appreciation for and to return kindness... The practice of remembering builds a life of gratitude. When we remember that we have been given everything we need for life and godliness in Christ (2 Peter 1:3), That His peace transcends all understanding (Philippians 4:7), that… Continue reading Gratitude
Nine Reasons Why You Must Fall in Love With Working Hard
The Man in the Arena
"It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who… Continue reading The Man in the Arena
Invest in yourself, then lead your team
Leadership can be learned and the pre-requisite for learning how is a commitment on the part of the leader to personal growth and development. Effective leadership starts at this point. The task of leading requires ongoing learning in order to address current needs and opportunities. Henceforth, intentional thought and regular time must be given to… Continue reading Invest in yourself, then lead your team
Thinking beyond self
"The inspiration of a noble cause involving human interests wide and far enables men to do things they did not dream themselves capable of before, and which they were not capable of alone. The consciousness of belonging, vitally, to something beyond individuality; of being part of a personality that reaches we know not where, space… Continue reading Thinking beyond self
Adaptive management: The way to go?
Learning in the context of organisations is synonymous to having a culture that encourages intentional reflection and processes that support this culture. For projects to be effective, teams must be able to adapt in response to changing contexts and new information. That said, the ability to adapt requires an environment which; facilitates creative thinking and… Continue reading Adaptive management: The way to go?
You need an income stream to meet your desires
It’s almost impossible to equalize the subjective differences between individual desires, but each individual, in his choice, compares things with reference to their intrinsic income-value to himself; he does not judge them merely by their physical or by their pecuniary measurements. However, when in moralizing strain, we say that the source of happiness is within… Continue reading You need an income stream to meet your desires
There’s no short-cut to transformation
Transformation; the process of completely changing the character of someone or the appearance of something in order to improve it. There are no magic bullets to create authentic transformation. All lasting results produced in a sequence are governed by principles and are developed over time from the inside out. Thus, we ought to embrace the… Continue reading There’s no short-cut to transformation
A new skill-set is required to overcome today’s challenges.
"The dogmas of the quiet past are inadequate to the stormy present." Abraham Lincoln. Therefore, we must think anew. We must develop not only a new mind-set, but also a new skill-set and a new tool-set that flows from it. This is definitely difficult to do; it throws everyone out of their comfort zones. But… Continue reading A new skill-set is required to overcome today’s challenges.
Data Science is the way to go!
The world is inundated with data. There is a virtual tsunami of data moving around the globe, renewing itself daily. Global financial markets, for example, generate vast amounts of data - share prices, commodity prices, options and futures prices, to mention but a few. But data is of no use if there is no one… Continue reading Data Science is the way to go!
Connectivity is productivity
Connectivity is productivity, be it in a modern office or an underdeveloped village; connection enables, but disconnection disables. So, if connectivity meant productivity, then, it must be a weapon against poverty. ~ Mohammad Yunus, Founder of Grameen Bank The world today is a global village. One can virtually go anywhere around the globe without even… Continue reading Connectivity is productivity
Private sector: An economy’s engine?
It's critical to remember that even with the virtues of government, all of its services come from some form of tax revenue. The government makes no money of its own. And in that way, government is the support for an economy's engine, it's not the engine itself. Therefore, winning companies in the private sector and… Continue reading Private sector: An economy’s engine?
Geopolitics and globalization
The struggle for power, the pursuit of material, strategic interests and the ever-present emotional tug of one's own olive tree continue even in a world of microchips, smartphones, and the internet. Despite globalization, people are still attached to their culture, their language and a place called home. And they'll sing for home, cry for home,… Continue reading Geopolitics and globalization
Continuous learning: A must for companies in today’s market
Learning how to adapt faster, learning how to engineer smarter, learning how to relate to customers better, learning how to manage knowledge better, learning how to control costs more effectively, and learning how to deliver goods and services more reliably - your company can always compete in today's market. ~Thomas Friedman, The Lexus and the… Continue reading Continuous learning: A must for companies in today’s market
Establishing a competitive brand
A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they get from that product or service. As this association grows stronger, consumers' loyalty and willingness to pay a price premium will increase. Therefore, to build brand equity, a company needs to do two of many things;… Continue reading Establishing a competitive brand
Embrace the wait
For most people, waiting is associated with killing time. A passive way to spend the interim between here and there. Twiddling thumbs in the line at the post office, aimlessly scrolling through apps on your phone, and the like. This frustrates you because it only delays your preferred outcome. According to a sociology book "The… Continue reading Embrace the wait
What you don’t know about success — Cristian Mihai
https://www.youtube.com/embed/TJ0Uaag5s60?version=3&rel=1&fs=1&autohide=2&showsearch=0&showinfo=1&iv_load_policy=1&wmode=transparent Success is a word gets thrown around a lot. It’s become meaningless. We all want it and the definition of success is different for everyone. Some of us want a beautiful family life. Some of us want a successful business. Some of us want lots of money so we can exchange it for goods… Continue reading What you don’t know about success — Cristian Mihai
Some Funny Thoughts on Economics by Alpheus Madsen — According To Hoyt
Some Funny Thoughts on Economics by Alpheus Madsen As a mathematician pretending to be a software developer recently looking for work, I couldn’t help but notice that there’s been an up-tick in companies looking for software developers who can program on blockchains — in particular, for projects to create automatically executable contracts for cryptocurrencies. I […]… Continue reading Some Funny Thoughts on Economics by Alpheus Madsen — According To Hoyt
Take a leap of Faith
via LEAP OF FAITH — Welcome to Tofino Photography
Trust: Essential in team building and performance
The very first job of a leader is to inspire trust. Trust is the single most essential element to our ability to deliver extraordinary results in an enduring way. Trust is integral to building high-performance because it enables an organization to work as it should; it's the first defense against dysfunction and the first step… Continue reading Trust: Essential in team building and performance
Imagination: The reality of what could be
In nearly every detective novel since the admirable stories of Conan Doyle, there comes a time when the investigator has collected all the facts he needs for at least some phase of his problem. These facts often seem quite strange, incoherent, and wholly unrelated. The great detective, however, realizes that no further investigation is needed… Continue reading Imagination: The reality of what could be
Generosity: A habit worth developing
There's a standard of righteousness that Might does not make right, that the end does not justify the means, and that expediency as a working principle is bound to fail. The only hope of perfecting human relationships is in accordance with the law of service under which men are not so solicitous about what they… Continue reading Generosity: A habit worth developing
Fail until you succeed
Nothing in this world can take the place of persistence. Talent will not: nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education alone will not: the world is full of educated derelicts. Persistence and determination alone are omnipotent. ~Calvin Coolidge, 30th President of the United… Continue reading Fail until you succeed
What is true wisdom?
True wisdom is inseparable from good conduct. Faith works. Wisdom acts. Your actions reveal what you truly believe, just as words are the fruit born from whatever is rooted deep down in your heart. What is getting rooted deep down in your heart? Above all else, guard your heart, for it is the wellspring of… Continue reading What is true wisdom?
Development starts from within us
I usually take walks along the streets of Kampala every day after work. Last Friday proved to be one of a kind, mostly because I was accompanied by an enchanting and brilliant young lady. Momentarily, a conversation ensued between us in which I got fully immersed. Just across the street, there sat an able-bodied man… Continue reading Development starts from within us
Invest in seven ventures, yes, in eight
Ship your grain across the sea; after many days you may receive a return. Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land. If clouds are full of water, they pour rain on the earth. Whether a tree falls to the south or to the north,… Continue reading Invest in seven ventures, yes, in eight
The reason behind a rise in Uganda’s Headline Inflation
Headline inflation is a measure of the total inflation within an economy, including commodities like food and energy prices, (e.g oil and gas), which can easily (spontaneously) rise in case of a sustained increase in general price levels of goods and services. Statistics from the Uganda Bureau of Statistics (UBOS) indicate that Uganda's annual headline… Continue reading The reason behind a rise in Uganda’s Headline Inflation
Is agriculture benefiting from Uganda’s economic growth?
Harvard's Centre for International Development recently released its latest global growth projections, which lists Uganda as one of the economies to grow fastest by 2026. The report noted that with the fall in oil prices, growth leadership has shifted towards, more diversified economies like Uganda. Uganda is expected to grow by 7.9% annually until 2026… Continue reading Is agriculture benefiting from Uganda’s economic growth?
Memories of what Mulago Hospital was meant to be and what it has become
LAST weekend I found a way of combining roast meat, drinks and a discussion about plastic recycling with an interesting fellow called Frank Morris Matovu, at Zone 7’s Shisanyama (a whole other story of its own). Frank is an architect, an artist, an avid reader, a curator and a collector of old books. I first… Continue reading Memories of what Mulago Hospital was meant to be and what it has become
There’s need to adapt our education system to present-day world complexity
The complexity of our present-day trouble suggests as never before that we need to change our present concept of education. Education is not properly an industry, and its proper use is not to serve industries, either by job-training or by industry subsidised research. Its proper use is to enable citizens to live lives that are… Continue reading There’s need to adapt our education system to present-day world complexity
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