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Monday, February 13, 2012

Monetary

News                                                                                                                             
WSJ | Fed Watchers See Risks in Rate Plan
Many economists believe the Federal Reserve risks making a big mistake if it sticks to its recent guidance about keeping interest rates super low for the next three years.

Econ Comments & Analysis                                                                                            
CATO | Fed Low Interest Rate Policy Distorts the Economy
Investors in stocks and longer-term bonds can thank Federal Reserve Chairman Ben Bernanke for his new policy of providing information on the probable path of the federal funds target rate over the next several years.
Washington Times | Twisting long-term bond markets
The Federal Reserve is keeping short-term interest rates absurdly low through late 2014, and that choice is going to cause long-term damage to our economy.
WSJ | Money Fund Make-Over
It appears that a federal financial regulator is about to propose taxpayer-friendly reform despite fierce industry lobbying.
Investors | Fed Low Interest Rate Policy Distorts The Economy
Investors in stocks and longer-term bonds can thank Federal Reserve Chairman Ben Bernanke for his new policy of providing information on the probable path of the federal funds target rate over the next several years.

Blogs                                                                                                                             
Heritage Foundation | Is the U.S. Economy in a “Liquidity Trap”?
Popular economics suggests that economic activity results from a circular flow of money in the economy: One person’s spending is a second person’s income, and the second person’s spending is a third person’s income, and so on.
WSJ | Fed Valentines Take the Web by Storm
There’s nothing like the Federal Reserve and Valentine’s Day to bring people together, on Twitter at least. #FedValentines hit the microblogging service early this morning, the brainchild of economist Justin Wolfers, who presents some of his favorites here.
Free Banking | More on the gold standard, with regret
I regret taxing readers’ patience with another post on the gold standard. As I and other bloggers here have made clear, a free banking system need not be a gold standard system.