The Jobs Problem and Training

Well-intentioned plans to boost the brainpower of workforces by pushing more people into universities are now also looking flawed. Competence varied widely among individuals with similar qualifications, both within and across countries. Italy, Spain and America have large numbers of graduates, but still perform badly in literacy and numeracy tests. Even more worrying, some university degrees turn out not to offer much advantage over good secondary-school qualifications. Those who completed school in Japan and the Netherlands outperformed southern European graduates at the same age.

The lessons seem clear: vocational education needs to be both more consistent and more ambitious. But the bedrock of success is improving the quality of secondary education. Without that, letters after a name do not mean much.    The Jobs Problem

Adept Adults

Has Quantitative Easing Worked?

It is nearly five years since the U.S. Federal Reserve slid into quantitative easing, the deployment of artificially created money into the bond market. QE and a prolonged period of near-zero interest rates have been the highlights of post-crisis monetary policy. That era is far from over, but it has lasted long enough for a preliminary judgment of monetary policy – especially as the Fed says it is now preparing to “taper” its bond purchases. My verdict: QE could have been worse, and it should have been better.  Quantitative Easing

Quantitative Easing

Where is the Rupee Going?

If the rupee still looks vulnerable, India has three options, none very palatable. One is to let the currency fall further. In most countries a cheaper currency would boost exports and help close the current-account deficit. But India’s manufacturing industry is too small and too bound in red tape to ramp up quickly. So a turn-around in the balance of payments may take time during which investors could panic. Meanwhile the weaker currency may destabilise the domestic economy by adding to inflation and increasing thegovernment’s subsidies on fuel and thus its borrowing.  Where is the Rupee Going

Rupee

Entrepreneurs: Finding Value No One Else Sees

David Isenberg has written a fascinating book on entrepreneurs.  Interestingly, he does not limit an entrepreneur to the innovation of an idea, but rather to the discovery of some unexplored niche that might satisfy human needs and desires.  He also shows us why the entrepreneurial temperament is necessary for startups.  We will synopsize the book in four articles over the next week.  But ii is a great read if you have the time.  Entrepreneurs

Entrepreneurs

What the New Steve Jobs Movie Teaches Entrepreneurs

Jobs is notorious for his gruff style, but he made Apple into a fantastically successful company.  It was no accident.  Adam Toren suggests four reasons why:  His vision helped individual creativity.  He didn’t hire dumb people.  He brought an artist’s philosophy to technology.  He snubbed the status quo. Try it.  You might succeed beyond your wildest dreams.  Jobs the Movie

Jobs

Interpreting the Federal Reserve’s Data

The New York Fed has long collected market information from its primary dealer trading counterparts and released these data in aggregated form to the public. Until recently, such data have only been available for broad categories of securities (for example, Treasury bills as a group) and not for specific securities. Starting with data covering the week ending April 3, 2013, the Fed now also releases aggregated primary dealer data on specific Treasury issues. In particular, the data cover dealer activity in the most recently issued Treasury notes and bonds, including both nominal securities as well as Treasury inflation-protected securities; specific issue data are not collected for bills. As with the broad security category data, the released data are aggregated across dealers and reported weekly as of the week ending Wednesday.  Michael Fleming of the New York Fed suggests what this might mean.  New Ways of Looking at Federal Reserve Data

Federal Reserve

Do Bloomberg Reporters Get Inside Information?

Bloomberg failed to immediately block its news reporters from access to information about clients who use the company’s well-known financial data terminals when the issue arose as the result of a 2011 Bloomberg TV broadcast, an independent review has concluded.

Instead, Bloomberg reporters continued to have access to the client data until April 2013, when an embarrassing similar incident prompted a financial client’s complaint and sparked an overhaul of the company’s policies and practices regarding the access.

In the interest of full disclosure, we use a Bloomberg terminal and often run articles from Bloomberg.   Bloomberg Trying to Sort Out Journalistic Ethics

Bloomberg

 

Raghuram Rajan to the Indian Reserve Bank as Economy Struggles

Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance, says “For a long-term impact we need to increase the attractiveness of India as an investment destination.”  In the meanwhile,  policy makers’ moves since July to tighten cash supply, restrict currency derivatives and curb gold imports have failed to arrest the rupee’s slump to record lows as they struggle to attract capital to fund a record current account deficit. The rupee has weakened 28 percent in the past two years, the biggest tumble since the government pledged gold reserves in exchange for loans from the IMF in 1991.  India Seeks to Buoy Rupee

Rupee