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Monday, August 27, 2012

Monetary

News                                                                                                                             
CNN Money | Investors and economists agree: No QE3
NEW YORK (CNNMoney) -- More stimulus from the Federal Reserve would probably boost the stock market, but regardless, both investors and economists agree: They don't want QE3.
Bloomberg | Jackson Hole May Disappoint Investors Primed for Stimulus
Federal Reserve Chairman Ben S. Bernanke -- returning this week to the scene of a 2010 speech that foreshadowed a second round of quantitative easing -- probably will disappoint investors looking for him to signal new stimulus.
WSJ | Bernanke Letter Defends Fed Actions
There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery.

Econ Comments & Analysis                                                                                            
Market Watch | Chicago Fed's Evans calls for immediate action
In a speech in Hong Kong, Chicago Fed President Charles Evans said the central bank should make open-ended purchases of mortgage-backed securities until the economy shows clear signs of improvement, such as a steady drop in unemployment for two or three quarters.

Blogs                                                                                                                             
AEI | Is inflation really a huge problem right now?
Inflation has been a big economic problem in the past. It may be again in the future.
Marginal Revolution | Which countries benefit the most from euro depreciation?
Based on these calculations, Ireland is a clear first. Pulling up the rear are Italy, France, Greece, and Portugal comes in last. Note that these calculations assume a kind of average/marginal equality.
Smart Money | What Fed Action Would Mean for the Dollar
When the Federal Reserve hinted Wednesday more stimulus could be on the way, the dollar sunk. While it remains unclear how or when the Fed might act, investing pros say it may still make sense to dial back on the greenback.