News
WSJ | IMF Reverses Position on Capital Controls
The International Monetary Fund, which for decades has been unwavering in its support of the free flow of capital, reversed itself and said developing countries can under some circumstances put up barriers to protect their economies.
CNN: Money | Sharp disagreement among Federal Reserve members
The central bank might need to tighten the reins on the economy before the end of the year to stave off inflation, said some members of the central bank's policy-setting body. But others appeared comfortable holding off on taking any action, according to the minutes of the Fed's March 15 meeting, released Tuesday.
Market Watch | Fed’s post-QE2 debate underway: March minutes
The minutes show that for a “few” Fed members, economic conditions might unfold in a way that would warrant the launch of an exit plan this year.
WSJ | The Inflation Solution?
Austerity and inflation will go together.
Bloomberg | Bernanke Faces Possible Fed Split on Maintaining Stimulus
A “few” among the central bank’s 17 governors and regional bank presidents said tighter credit may be warranted this year, while a “few others noted that exceptional policy accommodation could be appropriate beyond 2011,
WSJ | ADB Warns on Inflation
Asian policymakers need to make tackling inflation through preemptive action a priority, the Asian Development Bank said Wednesday, warning that several central banks may be behind the curve and some economies are still showing signs of overheating.
Fiscal Times | Inflation and Dodd-Frank: What Were They Thinking?
For most of us, successful financial regulation means keeping the economy on track, our savings secure and the dollar sound, which means, most importantly, reining in inflation. The problem is, the people in charge of curtailing inflation are the very ones making its resurgence a near certainty.
Bloomberg | Fed’s Biggest Foreign-Bank Bailout Saved U.S. Muni Bonds
A European bank that received the most Federal Reserve discount window help during the financial crisis also took $381 billion in aid from its home countries and owned subsidiaries implicated in bid-rigging that prosecutors say defrauded U.S. taxpayers.
Econ Comments
RCM | Has the Fed Eased Too Much?
The Federal Reserve's latest easing move, a $600 billion purchase of US government bonds, known as QE2, has elicited much criticism from Congress and some members of the Fed's own policy board. It has been labeled by critics as inflationary and contrary to the Fed's mandate to pursue price stability. There are some guides - though they are controversial - for determining when a central bank should stop easing after a financial crisis such as occurred in 2008. In light of those criteria, considered here, it is not clear that the criticism of QE2 is valid.
Bloomberg | Lockhart Not ‘Leaning’ to Fed Policy Tightening By Year-End
“I wouldn’t rule it out entirely, but at this stage I personally am not leaning in the direction of thinking that is absolutely required,” Lockhart told reporters during an Atlanta Fed conference.
Minyanville | Government Intervention Likely as Food, Energy Prices Skyrocket
With no wage inflation and unemployment and underemployment still at unacceptably high levels, history suggests it's unlikely Washington will just stand by and do nothing.
Blogs
WSJ: Real Time Economics | Fed’s Bullard to Push for Curtailing QE2 at April Meeting
James Bullard, president of the Federal Reserve Bank of St. Louis, said he would push at the Fed’s upcoming two-day policy meeting (April 26 and April 27) to reduce the central bank’s quantitative easing program by $100 billion, but held out little hope of being successful.
