Minari The Movie

Minari (water dropwort - used in Korean cooking) is a household name now. Have you seen the movie?

Image credit - Yonhap News

Minari - Image credit Maangchi

Report Gini Coefficient Alongside GDP

According to the Byte Size Economics blog, it is the distribution of the GDP that matters, especially during the Covid-19 pandemic.

 https://www.bytesizestory.com/post/it-s-the-distribution-that-matters

Image credit - Dean Yeong

Triple Bottom 'Profit, People and Planet'

Short 3-4 minutes read of current economic issues in the 'Byte Size Economics' blog in the link given below.

Excerpt:

"...Managing the juxtaposition between returns from innovation for an investor, and investment for broad societal benefit is challenging - but a focus on the 'triple bottom line' of profit, people and planet has never been more important."

https://www.bytesizestory.com/post/push-it-to-the-limit

Image credit - Byte Size Economics

More Than One Long Run Equilibrium

From time to time, I visited one of the Top 100 Blogs of Economics. Come across Prof. Wren-Lewis's 'Mainly Macro' blog. He blogs almost everyday. The blog is for both economists and non-economists.

Excerpt:

"...I hope this issue of OXREP, together with the earlier companion volume, will do two things. First to help give ideas to younger academics about going beyond models with a single equilibrium. Second to help economists in policy institutions to see that there are other ways of doing things beyond microfoundations, and that many of the stories they were told about why policy models have to be microfounded are not as true as perhaps they once thought."

https://mainlymacro.blogspot.com

Source: Prof. Simon Wren-Lewis, 2021

Thailand's Floating Hydro-Solar Farm

The pros and cons of the solar farm is worth reading. But you have to search it elsewhere. The link below provides the facts.

Excerpt:

"Thailand is building one of the world’s largest floating hydro-solar farms in Ubon Ratchathani, a province in the country’s northeastern Isan region, on the border with Laos and Cambodia.

The 300-acre, 144,000-solar-panel hybrid project is at Sirindhorn Dam, on a 111-square-mile (288-square-kilometer) reservoir. The state-run Electricity Generation Authority of Thailand (EGAT) will use an Energy Management System to switch between solar and hydropower."

https://electrek.co/2021/04/21/egeb-thailand-builds-a-huge-floating-hydro-solar-farm/

Image credit - electrek.co

Breakeven Inflation

In light of the search for LIBOR replacement, we can revisit the article written by Brian Romanchuk, 2014 on Bond Economics. A good read.

Excerpt:

"The breakeven inflation rate is a market-based measure of expected inflation. It is the difference between the yield of a nominal bond and an inflation-linked bond of the same maturity."

http://www.bondeconomics.com/2014/05/primer-what-is-breakeven-inflation.html

Image credit - Romanchuk, 2014

Beyond LIBOR

Excerpt:

"Key takeaways:

• The new risk-free rates (RFRs) provide for robust and credible overnight reference rates, well suited for many purposes and market needs. In the future, cash and derivatives markets are expected to migrate to the RFRs as the main set of benchmarks. The transition will be most challenging for cash markets because of the bespoke nature of contracts and structurally tighter links to interbank offered rates.
• To manage asset-liability risk, financial intermediaries may continue to need a set of benchmarks that provide a close match to their marginal funding costs - a feature that RFRs or term rates linked to them are unlikely to deliver. This may call for RFRs to be complemented with some form of credit-sensitive benchmark, an approach already undertaken in some jurisdictions.
• It is possible that, ultimately, a number of different benchmark formats will coexist, fulfilling a variety of purposes and market needs. The jury is still out on whether any resulting market segmentation would lead to material inefficiencies or could even be optimal under the new normal."

https://www.bis.org/publ/qtrpdf/r_qt1903e.htm

Image credit - Schrimpf and Sushko, 2019

Malaysia's Sovereign USD10 million, 10 year Sustainable Sukuk

Excerpt:

"The strong demand has also resulted in the lowest ever yield and spread for a US-dollar sukuk issuance by Malaysia, with the 10-year and 30-year Trust Certificates priced at 2.070 per cent (T + 50 basis points) and 3.075 per cent (T + 80 basis points) respectively," the MoF (Ministry of Finance) said today. 

...

The MoF said the sukuk was also unique as its underlying assets were sustainable assets, being vouchers representing travel entitlement on Malaysia's Light Rail Transit, Mass Rapid Transit and KL Monorail networks."

https://www.nst.com.my/business/2021/04/684297/overwhelming-response-malaysias-world-first-sovereign-dollar-sustainability

Image credit - Slide Share

OECD's Going Digital ToolKit

The toolkit for the digital performance by the OECD. Unfortunately, Malaysia is not in the list. Indonesia is in the toolkit analysis.

https://goingdigital.oecd.org

Source: OECD

Real-Life Elasticity Situation

The article, written in 2017, illustrate the concept of elasticity in economics.

https://www.yukon-news.com/opinion/youre-in-a-real-life-elasticity-experiment/

Image credit - The Geography of Transport System

Pandemic Fatigue (Keletihan Pandemik)

The World Health Organization (WHO) discusses how to deal with pandemic fatigue (keletihan pandemik in Malay), and develop policy framework recommendations on how to deal with the situation. It includes 4 key strategies, quoted below:

• Understand people: collect and use evidence for targeted, tailored and effective policies, interventions and communication.
• Engage people as part of the solution.
• Help people to reduce risk while doing the things that make them happy.
• Acknowledge and address the hardship people experience, and the profound impact the pandemic has had on their lives.

https://www.bernama.com/bm/tintaminda/news.php?id=1951666#abc. - Malay 

https://www.who.int/news-room/feature-stories/detail/who-europe-discusses-how-to-deal-with-pandemic-fatigue    -  WHO

Image credit - Financial Benefit Services

Pandemic, Robots and Inequality

Excerpt:

"As automation intensifies following COVID-19 and transforms workplaces, more workers will need to find new jobs, especially those who are less skilled. Policies to mitigate rising inequality include revamping education to meet the demand for more flexible skill sets, and lifelong learning and new training—especially for the most affected workers. A good example is Singapore’s SkillsFuture initiative, which promotes learning in all stages of life to address the challenges brought by technological changes.

These measures may still fall short if the training involves acquiring a substantively different and challenging set of skills, raising the possibility of dropouts. It is therefore important for policymakers to consider ways to address medium-term social challenges, including through strengthened social safety nets.

While robotization is inevitable, its distributional outcome will depend on policies. A society that is more willing to provide support to those who are left behind can accommodate a faster pace of innovation, while ensuring that all members of society are better off."

https://blogs.imf.org/2021/04/19/what-pandemics-mean-for-robots-and-inequality/

Credit image - IMF Blog

The Future of Housing - Multigenerational Home Design

The house is designed for four-generations. There are already a few houses using this concept in Malaysia. Examples are Amber Residence and the Goodwood Residence.

https://www.fastcompany.com/90375977/this-home-designed-for-four-generations-is-a-glimpse-at-the-future-of-housing

Image credit - The New York Times

The SoapBottles Innovation

Read the interesting way the Berlin-based designer Jonna Breitenhuber's water soluble solution to the plastic bottles. 1-minute read. Our earth is smiling again, ^_^

https://www.fastcompany.com/90412294/the-future-of-packaging-could-be-as-simple-as-a-bar-of-soap

Image credit - Fast Company & Jonna Breitenhuber

The Li Ziqi Traditional Lifestyle Story

Always two side of the story. 

https://www.thejakartapost.com/life/2020/05/04/li-ziqi-vlogger-who-amazes-world-with-chinas-countryside-life.html

Video credit - Youtube Li Ziqi

Digital Currency vs Gold

Interesting article written by Joe Foster in 2017. With the recent development in sovereign digital currency, it is a good read. 

https://www.barrons.com/articles/will-digital-currencies-pose-a-threat-to-gold-1502990051

Image credit - Getty Images

Global Waves of Debt - The Book

Excerpt:

"In this era of low volatility and extremely low global real interest rates, both the private and public sectors in emerging markets have been borrowing at a strong pace. Is another crisis looming or are we in a new normal? Global Waves of Debt puts the current debt wave in context by systematically comparing its features with the three major earlier emerging market debt waves since 1970, all of which ended in widespread crises. Is this time different? Deeply researched and with many novel insights, this book will be a useful reference for policymakers and academics alike."

 -- Kenneth Rogoff, Harvard University

https://www.worldbank.org/en/research/publication/waves-of-debt

Image credit - The World Bank

India and the Tiffin Carrier

I am in the process of writing a case study on Tiffin lunchbox in Malaysia. Apparently, Harvard has conducted a case study on the amazing success of dabbawalas (tiffin carrier) in Mumbai, India. The system in Mumbai is so efficient even FedEx, reportedly envy the dabbawalas. Full story below.

Note: There is also a dabbawalas tourism, but not covered in the article below.

https://www.independent.co.uk/life-style/food-and-drink/dabbawalas-food-delivery-system-mumbai-india-lunchbox-work-lunch-tiffin-dabbas-a7859701.html

Image credit - Sweven Tours

Covid-19 Global Weekly Update

The 4th wave of the pandemic is indeed a fork in the road. Hopefully, it will be different from the previous peak. India has introduced "vaccine festival" in mid April 2021 to all Indian residents above 45.

Excerpt from Week 65 Update:

"The surge in India has particularly alarmed the world. This is because India is also a vaccine manufacturing hub. In normal times, it caters to over 60% of the vaccine demand from developing countries. In the present pandemic, India has emerged as the biggest exporter of the AstraZeneca vaccine through a local firm, the Serum Institute of India (SII), which is also the world’s biggest vaccine maker."

https://www.counterpointresearch.com/coronavirus-weekly-update/

Image credit - NewswrapIndia

The 4th Wave of Covid-19 and Economic Policy Implications

Should the Government spends more for the 4th wave of Covid-19? The article below from New Strait Times has the story. More FTTIS (find-trace-test-isolate-support) is needed.

https://www.nst.com.my/news/nation/2021/04/680244/4th-wave-looms-warns-expert

Image credit - The Conversation

LIBOR Transitioning & Dynamite

Excerpt:

"In 2017 the UK’s Financial Conduct Authority (FCA) announced that after 2021 it would no longer persuade or compel panel banks to submit the rates required to calculate LIBOR. Our report looks at the implications introducing different LIBOR replacements could have for financial firms, and outlines why it’s wise to start planning now."

Full article is available here https://www.oliverwyman.com/our-expertise/insights/2018/feb/libor-rate-transition.html

By the way, please watch BTS's song Dynamite MV (987+ million views) below. The song overtakes PSY's 'Gangnam Style' record for the longest-charting-song in Billboard's Hot 100. Both the story behind the song and the choreography are awe-inspiring.

Credit - BTS Dynamite Official MV

Critical Thinking in Economics - the Big (Outside the Box) and Little (Inside the Box) of It

Discussants on the topic above by prominent scholars. I also love the fact that in one of the slides, Calvin and Hobbes debates on maths is included.

https://www.aeaweb.org/conference/2021/preliminary/1703?q=eNo1yzsOgCAQRdG9vJpCCxvW4QaITDFRPmGIhBD2Lhjt7i1Og5AIB7_XSNDtX2is6ApGJBxjoJApuVHO-JPL-JupTGEpG77IvkQhxThqW6a2pn6WHc3qDwXiXCI6

Excerpt from the Authors' Slide:

Source: Colander & Siegfried, 2021

Yiruma - "River Flows in You"

Remember the Soundtrack on Eclipse - Twilight Saga? "River Flows in You" by the Korean pianist Yiruma in the video below (129 million views). You will recognise the tune. Yiruma regained his popularity during Covid-19 due to this gentle piano composition. It is soothing. Enjoy. 

Video - YIRUMA Place

Xiplomacy - China's Dual Circulation Policy

Excerpt:

"Dual circulation is seen as a strategic and win-win choice for China to reshape its international cooperation and new competitive edge, said Justin Yifu Lin, former World Bank chief economist and honorary dean of the National School of Development at Peking University."

http://www.xinhuanet.com/english/2021-03/08/c_139795116.htm

Image credit - South China Morning Post

Bailong Elevator

The Highest and heaviest outdoor Elevator in the world - the Hundred Dragon Elevator that is 1,070 feet tall. It took three years to built. Enjoy the video. 

Video - WonderWorld

Bitcoin Mining

A beginner's Guide to bitcoin by Investopedia in the link below.

https://www.investopedia.com/tech/how-does-bitcoin-mining-work/

Image - Sabrina Jiang @Investopedia2021

"Caizcoin" and Islamic Finance

Caizcoin, founded in Germany, enters Islamic finance cryptocurrency. More in the link below:

https://www.dailysabah.com/business/finance/islamic-finance-focused-caizcoin-enters-cryptocurrency-market

Image - Caizcoin.io & Sabah Daily