News
Bloomberg | Gross Says Fed Accommodative Even With Job Gains: Tom Keene
Pacific Investment Management Co.’s Bill Gross said the Federal Reserve will continue its accommodative monetary policies even with the U.S. economy adding more jobs than forecast last month.
WSJ | Japan Bank Steps Up Attack on Deflation
The Bank of Japan took additional monetary easing action as a drop in exports and output forced it to lower its economic outlook. It also issued a joint statement with the government stressing a commitment to fight deflation.
Bloomberg | Rosengren Calls for QE3 Until Unemployment Falls to 7.25%
Federal Reserve Bank of Boston President Eric Rosengren said the Fed should buy mortgage bonds until the jobless rate falls to 7.25 percent and hold the target interest rate near zero until hitting 6.5 percent unemployment.
Econ Comments & Analysis
Forbes | Economic Booms And Busts Of The Gold Standard Era
The Keynesian economists claim that gold standard systems have historically caused “booms and busts.” Recently, I asserted that no major economic event was caused by a currency of stable value. The purpose of a gold standard system is to provide a currency of stable value – as stable as can be achieved in our imperfect world – and, for the most part, it achieved this goal over a period of centuries.
