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Wednesday, September 19, 2012

Monetary

News                                                                                                                             
Bloomberg | Defining Bernanke's New Fed Target
With $40 billion in monthly asset purchases, the Federal Reserve's new open-ended program of quantitative easing is all about generating self-fulfilling expectations of economic growth.
Daily Finance | 5 Ways QE3 Will Affect Your Wallet
Well, the Federal Reserve's third round of quantitative easing -- known as QE3 -- is all that and more. In fact, if rounds of quantitative easing had slogans, QE3's would be: "Wow! We've never tried anything this powerful before!"
WSJ | Fed Officials Assess Central Bank's Action
A top Federal Reserve official expressed strong support Tuesday for the central bank's latest efforts to invigorate the recovery, saying it can do more if necessary.
Market Watch | Bank of Japan adds to stimulus
The Bank of Japan Wednesday said it will provide more monetary stimulus in response to a slowing in domestic economic activity, increasing the size of its asset purchases by 10 trillion yen ($126.7 billion) to about ¥80 trillion.

Econ Comments & Analysis                                                                                            
Real Clear Markets | Bernanke to Savers, Unemployed and Wall Street: Drop Dead.
In his essential 1982 book, The Economy In Mind, the late Warren Brookes relayed a story from 1979 in which a Keynesian economist from the United States was passing through customs at JFK Airport.
WSJ | Bernanke's 'Risk-On, Risk-Off' Monetary Policy
The Federal Reserve thrilled markets last week with the announcement that it would pump $40 billion into the economy each month through the purchase of mortgage-backed securities. Chairman Ben Bernanke justified this action by explaining that the Fed's tools "involve affecting financial asset prices."
Spectator | A Road to Prosperity
Gold, a fundamental, metallic element of the earth’s constitution, exhibits unique properties that enabled it, during two millennia of market testing, to emerge as a universally accepted store of value and medium of exchange, not least because it could sustain purchasing power over the long run against a standard assortment of goods and services.

Blogs                                                                                                                             
CATO | The Fed’s New Round of Quantitative Easing
The FOMC’s decisions create yet another exit problem for the Fed. If job growth picks up, or inflation rises, before every future FOMC meeting the market will wonder if the Fed will stop buying MBSs. The Fed has refused to offer any genuine guidance as to when the policy will end.
WSJ | Former Fed Regulation Chief to Advise Banks
The Federal Reserve’s most recent head of bank supervision and regulation will now be helping advise big banks how to adapt to the changing regulatory landscape he was once at the center of crafting.