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Tuesday, April 9, 2013

Monetary

News                                                                                                                             
CNN Money | Volcker: Central banks are too aggressive
Former Federal Reserve chairman Paul Volcker warned Monday about potential dangers from what he calls "unorthodox" and aggressive moves by central banks around the world.
Bloomberg | Bernanke Says Fed to Press Banks to Curb Liquidity Risk
Federal Reserve Chairman Ben S. Bernanke said the Fed plans to avert strains in the banking system by pushing financial companies to better manage liquidity risk and reduce reliance on wholesale funding.
Market Watch | China inflation eases, but some economists worried
China’s consumer inflation eased in March, data out Tuesday showed, with the less-than-expected rise in prices helping stocks but worrying some analysts.

Econ Comments & Analysis                                                                                            
Real Clear Markets | High Bank Equity Requirements Will Slow the Economy
There are serious proposals to force banks to fund themselves with considerably less debt and far more money from their shareholders. This would protect the rest of us, by leaving more of the risk with shareholders and reducing the potential need for taxpayer bailouts. However, there is a trade-off for the greater safety; loans would become more expensive and the economy would slow.