So the past few days i’ve been deep entrenched in my textbooks and lecture notes in International economics, as we’re having the exam for this course this coming Friday. It’s an interesting course all around, i’ve particularly enjoyed (yes, enjoyed!) the economic history and exchange rates regimes parts of the course.
Anyways, as i was browsing around Bloomberg’s site i came across this article that suits what i’ve been reading the past days almost eerily. It’s an article with a bit of background on capital controls and the Obstfeld-Taylor trilemma. Sometimes the planets just line up i guess 😉
Take a look at the article here if you feel in need of a slice of capital wisdom this Wednesday.
I posted this on EconTalk over at LinkedIn, thought I’d put it here as well.
So, Scotland goes all in today; what is your take on the scottish independence referendum?
Will it be a yes or a no? And i know that this is a question that is objectively hard to answer, but which would be economically more beneficial for them?
My own take is that IF they decide to leave the UK they will need to settle the question of their currency quickly. Britan says that (as far as i am concerned, correct me if i’m wrong) that they can’t use the pound. So what can they do in the short term? They’d need to create their own currency which apart from being extremely expensive is connected with all sorts of uncertainity and high transaction costs for external parties. If they’d create their own currency surely it would need to be pegged to 1; The british pound or 2; the Euro. A free floating untested currency would be a very high stakes game to enter as I see it. To instill trust in the market and any export partners the currency would need to be pegged to a tried and tested currency.
Anyways, let’s see how this goes. I just thought i’d get a discussion going here about it.
You really want to keep up with world events so you decide that you’re going to start frequent some news website on a daily basis, or perhaps even get your hands on an old fashioned news paper. You do this exactly once or in the best case twice until you either forget about it since your so pre-occupied with studying or you simply feel that your precious time, scarcest commodity of them all, is better spent elsewhere (like reddit or any other source of a daily fix of easiness). I end up here often, i must say.
But lo and behold i found these two babies in Player FM’s podcast archive the other day while i was on my cardio routine. It’s the ‘CBS news weekend roundup’ and ‘Deutsche welle inside Europe’. Both are great at summarizing the week that has been with perhaps a deeper look at a selected couple of noteworthy events in the past week. Needless to say ‘Inside Europe’ focuses more on European events and affairs, but i think that it would be a great way for non-Europeans to stay up to speed with what’s happening here as well. So check them both out if you’ve been looking for that concentrate of important world events that you’ve missed during the week because you’ve been so busy studying (of course, what else right?)!