News
Bloomberg | Deflation Dismissed by Bond Measure Amid QE3 Anticipation
For all the handwringing over the slowdown in the U.S. economy, the bond market shows there’s less risk of deflation now than before the Federal Reserve’s first two rounds of large-scale debt purchases.
WSJ | Dollar's Surprising Strength Eats Into the Bottom Line
Exchange rates can be tricky to manage, and many companies try to persuade investors to strip out their effects when judging corporate performance. But in the past quarter, the dollar gained much more quickly than expected.
Bloomberg | Fed Weighs Cutting Interest on Banks’ Reserves After ECB Move
Federal Reserve Chairman Ben S. Bernanke may be taking another look at cutting the interest rate the Fed pays on bank reserves to bring down short-term borrowing costs and spur the slowing U.S. expansion.
Econ Comments & Analysis
Forbes | Ron Paul, Fractional Reserve Banking, and the Money Multiplier Myth
There’s a saying in the banking industry that for a poorly run bank no reserve requirement is stringent enough, and then for a well run bank, any reserve requirement is positively draconian.
Market Watch | 5 lessons Bernanke has learned on the job
Back in 2006 when Ben Bernanke was named chairman of the Federal Reserve, he knew he’d make some mistakes, but he was pretty sure the Fed wouldn’t do what the United States did in the 1930s or what Japan did in the 1990s that allowed depressed conditions to persist for years.
Blogs
Minyanville | Can More Fed Twisting Actually Help?
Is there correlation, non-correlation, or is it simply emotion driving the tape? Considering the economic news released last week the US, equity markets played quite the tune, akin to a punk rock band: No rhyme or reason in its beat.
Marginal Revolution | The public choice approach to monetary policy
By speeding the flood of less expensive imported products into Japan, the strong yen is contributing to a broader drop in the prices of goods and services, known as deflation, that has helped retirees stretch their pensions and savings.
