News
Bloomberg | Fed’s ‘Operation Twist’ Fails to Convince Investors It Will Boost Growth
The Federal Reserve’s plan to buy longer-term Treasuries has succeeded in bringing down interest rates while not convincing investors the unorthodox monetary policy will strengthen economic growth.
CNN: Money | Can the Federal Reserve get banks lending?
The Federal Reserve wants consumers to apply for more mortgages and businesses to take out more loans, in order to boost the sluggish U.S. economy. At least, that's the thinking behind Operation Twist, a policy announced by the Fed Wednesday that's meant to drive down long-term interest rates, thereby making it cheaper to borrow.
Market Watch | Chinese yuan falls vs. dollar
China’s yuan departed from its upward trend Thursday and Friday after hitting a record high earlier in the week, though analysts said the currency’s long-term prospects are strong.
Econ Comments
Washington Times | GHEI: The Fed’s twisted policy
Interest-rate gimmicks don’t address fundamental economic problems.
Minyanville | About That 2011 Hyperinflation Call…
Hyperinflationists forgot to factor in the possibility that the euro, the pound, and the yen just all may be far worse hiding places than the dollar.
RCM | The Fractal Character Of the Current Bank Run
If nothing else, the Federal Reserve under Ben Bernanke, divided as it has become, will be rigidly consistent in its prime directive of saving the financial system before all else.
Blogs
Coordination Problem | Twisting When We Should Be Shifting
The idea is to twist long and short rates by buying more long-term securities and paying for them with sales of shorter-term ones. The hoped-for reduction in long term rates would benefit mortgage holders and others on the consumer side, but also spur investment.
Reports
CRS | International Monetary Fund: Background and Issues for Congress
The IMF has evolved significantly as an institution since it was created.
