History of Monetary Policy

Hi friends 👋,

Happy Wednesday! We’re launching a new newsletter today called Weekly Olio.

For the last few months, we have been consuming a lot of interesting and thought-provoking content from all across the internet including tweets, blog posts, substacks, videos etc. And more often than not, we ended up sharing some of these nuggets with our friends/ colleagues or with our network on Linkedin. The feedback we received was quite encouraging, but there were a few questions and requests as well…

• How do you find these stories?

• Are there more such pieces? And can you share those as well?

• The next time you come across something this interesting, do share it with us.

So here we are, attempting to do just that in a more structured manner.

The idea is simple, every week we will share a quote, a tweet, an infographic, a short read and a long read that we found relevant and interesting.

We’re going for a combination of indulging our never-ending curiosity and building depth in areas of familiarity. Hence, while we will try to remain focused on tech, startups, business and economics, we also intend to share other content with depth and marvel.

Also, we want this to be collaborative. So, if and when you come across something which is interesting, just drop us a line. We’ll make sure to give you credit for sharing them.

And yes, please do give us feedback. Would really like to know if any piece made you feel Oh wow! or Oh crap!

Let’s get to it.

The Quote󠀢 💭

The Tweet 🐦

Last week’s crypto saga starring SBF - FTX seems worthy of a full-length movie! 🍿

The Infographic 💹

Over the past year, bank lending in India has seen double-digit growth. However, the growth in bank deposits has lagged credit growth. This threatens to create a funding gap for banks, which depend on deposits to fund lending.

Credits: Livemint

The Short Read 📝

China’s economy will not overtake the US until 2060, if ever - by Ruchir Sharma 

Ruchir Sharma is an investor, author, fund manager and columnist for the Financial Times. He is the Chairman of Rockefeller International, and was an emerging markets investor at Morgan Stanley Investment Management.

Numerous analysts have predicted the end of China's growth story as the government keeps on scoring own goals month after month, both on the political and on the Covid front. Ruchir Sharma raises a number of concerns on the monumental scope of China's impending problems in this succinct but powerful post.

The Long Read 📜

A Brief History of the Past 10,000 Years of Monetary Policy and Why Last Week Was a Big Deal - by Ben Hunt

Ben Hunt is an industry veteran with an authoritative background in finance including roles such as a portfolio manager, risk manager, and entrepreneur coupled with academic experience in game theory and econometrics.

Due to the policies of the now-sacked Liz Truss government in the UK and the accompanying rise in interest rates, the term "Lehman moment" has entered the common lexicon in recent months. Many of us learnt about CDOs and CLOs - the exotic Wall Street derivatives that took down Lehman brothers during the 2008 economic crisis. This time around, Liability-Driven Investment, or LDI, threatens to play the same role. This piece explains in simple terms what LDI is and why it might be dangerous for the global financial system.

That’s all for this week. If you enjoyed this edition, we’d really appreciate if you shared it with a friend, family member or colleague.

We’ll be back in your inbox at 2 pm IST next Wednesday. Till then, have a productive week!

Peeyush and Mohit

Disclaimer: The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual.