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Tuesday, June 19, 2012

Monetary

News                                                                                                                             
FOX News | Fed meets as many await possible help for economy
The Federal Reserve is meeting this week at a time of high alert — over the slumping U.S. economy, the aftermath of the Greek elections and the shaky financial markets.
Market Watch | Fed expected to twist again
The Federal Reserve is likely to extend its Operation Twist program at the end of its two-day meeting on Wednesday, a growing number of Fed watchers said over the weekend.
WSJ | Fed Wrestles With How Best to Bridge U.S. Credit Divide
The U.S. recovery is hobbled by an economic divide that separates Americans not by income or wealth but by their access to credit.

Econ Comments & Analysis                                                                                            
Market Watch | IMF report urges Europe action on growth
Europe should leave no stone unturned to encourage economic growth, according to a new report released Monday by the International Monetary Fund.
Real Clear Markets | Germany Will Decide If the Euro Survives the Summer
Germany alone will have to decide. I don't know which way the decision will go. I do know that a decision needs to come quickly. If it doesn't, the euro will not survive the summer.
Market Watch | ECB battens down the hatches
Amid the narrowest of victories for Greece’s New Democracy party and ahead of much financial market nail-biting, the European Central Bank is battening down the hatches.

Blogs                                                                                                                             
Economist | Shiny, new, unopened & unused
So what will they do? Much of the street expects some kind of action, a view I share. It would probably come as an extension of “Operation Twist,” the purchase of longer-term bonds in exchange for short or medium bonds already in the Fed’s portfolio. It could stretch this out over a few months or a full year. 
Library of Economics | Krugman on Inflation
What actually happened in the 80s was, quite literally, a confirmation of the validity of textbook Keynesian economics.