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Monday, May 13, 2013

Monetary

News                                                                                                                             
Market Watch | Top Fed contender Yellen faces QE test
The next chief of the Federal Reserve will decide when to reverse the easy-money policies of Ben Bernanke, a judgment that could strangle the economic recovery if made too early or trigger runaway inflation if made too late.
WSJ | Fed Maps Exit From Stimulus
Federal Reserve officials have mapped out a strategy for winding down an unprecedented $85 billion-a-month bond-buying program meant to spur the economy—an effort to preserve flexibility and manage highly unpredictable market expectations.

Econ Comments & Analysis                                                                                            
Bloomberg | Is the Fed Afraid to Regulate the Big Banks?
The skirmishing is almost over, the main armies almost assembled. Ahead is a great battle over the future of our financial system that could have more profound consequences than the Dodd-Frank legislation of 2010.
Fortune | Active inertia weakens economic policy responses
As bad as things are -- especially for the poor, the young, the unemployed, and other vulnerable segments of the economy -- things need to get worse to overcome the enormous active inertia that is now embedded in the political systems and institutions.
MSN Money | Central bankers out of their depth
With the market hitting record highs even as the US runs up huge deficits, officials around the world are embracing the very Fed policies hurtling us toward financial ruin.

Blogs                                                                                                                             
Economist | Stability through instability
This spring, the economics commentariat is discussing the relationship between monetary policy and financial stability. The concern that loose monetary policy might lead to financial excess is not a new one; some on Wall Street began complaining about Ben Bernanke's bubbles back before the recession ended.