News
WSJ | Central Banks Flex Muscles
Massive injections of stimulus into financial markets by the world's largest central banks are creating a domino effect around the globe, prompting governments from Brazil to Turkey to take steps to keep easy money from flooding in and driving up their currencies.
CNN Money | Federal Reserve policies favor the rich
The Federal Reserve's most recent stimulus is expected to boost homes prices and the stock market, but what if you're too poor to invest in either?
Market Watch | Fed's QE3 plan built on Japan lessons: Rosengren
The aggressive nature of the Federal Reserve's third round of asset purchases, or QE3, was designed so that the U.S. does not suffer a prolonged economic stagnation like Japan, said Eric Rosengren, the president of the Boston Fed Bank on Thursday.
Bloomberg | Euro-Area Services, Manufacturing Slump to 39-Month Low: Economy
Euro-area services and manufacturing output fell to a 39-month low in September as European leaders struggled to reverse the single-currency bloc’s slide into recession.
Econ Comments & Analysis
Market Watch | Is inflation back from the dead?
One of the standout features of the financial crisis has been that inflation has collapsed. Over the past few years, even as the Federal Reserve has pumped hundreds of billions of dollars into the economy to get it moving, prices and wages have barely moved, and the bond market has boomed.
Market Watch | Bullard says Fed policy 'broadly appropriate': FT
Current U.S. monetary policy "remains broadly appropriate," wrote the president of the Federal Reserve Bank of St Louis, James Bullard, in the Financial Times on Thursday.
NBER | An Empirical Analysis of the Fed's Term Auction Facility
The U.S. Federal Reserve used the Term Auction Facility (TAF) to provide term funding to eligible depository institutions from December 2007 to March 2010.
Blogs
Economist | The global output gap
The image at right is a graphic taken from Bloomberg's markets page, which shows four indexes of commodity prices. There are obviously a lot of things influencing commodity prices, from drought in America to China's growth prospects, but what pops out in this image is the overwhelming influence of perceptions of the euro-area crisis.
WSJ | Kansas City Fed’s George Opposes Bond Buying
Kansas City Federal Reserve Bank President Esther George Tuesday said she opposed the central bank’s latest bond-buying effort, saying it risks higher inflation and distortions in the market, the Daily Oklahoman reported Wednesday on its website.
John Taylor | The Eroding Effect of QE3 on Mortgage Spreads
It has been a week now since the Fed’s QE3 announcement that it would be again buying mortgage backed securities (MBS). There was an initial decline in the mortgage spread on the announcement but, as often happens, that initial impact seems to have been eroding away day by day.
