News
Market Watch | ECB lends $641 billion to European banks
The European Central Bank on Wednesday attempted to send a strong signal to financial markets by offering to loan $641 billion to 523 euro-area banks in a massive three-year funding operation.
Econ Comments
Forbes | Why The Fed Can't Be Counted On To Save The Economy
Over the years, the Fed has been directed to achieve more and more conflicting priorities, including economic growth, price stability, interest-rate stability, financial market stability and exchange‑rate stability as well as government funding and full employment.
Reuters | Fed up with Bernanke
Guaranteeing cheap money is a Keynesian way of restoring health to an economy in recession, though Keynes himself was aware that low interest rates do not automatically lead to jobs.
Blogs
Econlog | Eurobanking
What you have in Europe, even more than in the U.S., are banks that have grown much too large, using these dangerous leverage techniques.
Econlog | Robert Hetzel on the Liquidity Trap
The institutional fact that makes a liquidity trap an irrelevant academic construct is the unlimited ability of the central bank to create money.
