Econ Comments
Fox Business | Europe Rejects IMF Call for More Bank Capital
The clash highlights diverging views about the underlying safety of the European banking system. The IMF and the International Accounting Standards Board (IASB) have both voiced concerns, while European regulators, politicians and banking associations argue that banks have a sufficient capital cushion to cope with market turbulence and worries over sovereign debt after several rounds of capital raising across the continent.
AEI | Does the Fed Need to Ease Even More?
There are no clear and easy solutions to the many problems facing the U.S. and European economies. In the United States, we need, as we have all along, fundamental tax reform with lower marginal tax rates financed by closure of arbitrary tax loopholes. The Fed still needs to guard against a return of deflation.
Blogs
Reason Foundation | The Fight at the Fed
A number of the voting members of the FOMC began arguing for naming a specific time to keep interest rates low, but others preferred linking low interest rates to trends in the economy. We know now that the majority won out, voting for a policy that keeps the federal funds rate at zero until mid-2013.
Daily Capitalist | FDR, Gold Confiscation, And Quantitative Easing
I found this really interesting comment from the St. Louis Fed on the first event of quantitative easing in the U.S. by Franklin Roosevelt in 1933. It is interesting for several reasons. First, it has been done before. Second, it was “sterilized” by gold purchases, and third, it appears they printed money to pay for the gold they confiscated from U.S. citizens.
