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Monday, May 23, 2011

Monetary

Econ Comments                                                                                                             
Minyanville | All for One Euro and One Euro for All?
Have the powers that be in the ECB quietly decided to let Greece go, since it never have been allowed it into the eurozone to begin with?
WSJ | Mundell: Deflation Risk for the Dollar
The Nobel winner says a stable dollar-euro rate is the best economic medicine.
Minyanville | Is Paul Krugman Right to Praise the Dollar's Decline?
Krugman has a valid point in that the US has seen improvement in its manufacturing sector. But at what cost?
Source | Will Fed Insist on Trying to Ignite Unhelpful Wealth Effect?
The Bernanke Federal Reserve has been playing a card that used to win the hand but no longer does. But that doesn't mean it will deter it from trying again.

Blogs                                                                                                                             
Daily Capitalist | Bernanke Will Be Forced To Do QE3
There are several aspects of this conclusion that I wonder about. The basic issue is whether or not the Fed will let their balance sheet “freeze” at its current $2.75 trillion level or will the Fed be eventually encouraged to undertake QE3.