News
CNN Money | Prices climb in June, but annual inflation still tame
Prices for groceries and clothing and other goods all increased in June, but inflation remains below 2% a year.
Econ Comments & Analysis
Fortune | Interest rates 101: Why the party is over
The Fed wants to keep long-term yields depressed, but its policies are riddling the market with risk.
WSJ | The Financial Instability Council
There's finally a healthy discussion in Washington about how to end too-big-to-fail banks. But before the government can start getting rid of taxpayer-backed behemoths, it first has to stop creating them.
Forbes | Ben Bernanke's Fed Needs Help That Kevin Brady's Monetary Commission Plans To Provide
On July 10th Federal Reserve Board Chairman Ben Bernanke made a widely noted speech before the National Bureau of Economic Research, in Cambridge, Massachusetts: “A Century of U.S. Central Banking: Goals, Frameworks, Accountability.” The immediate takeaway? Rumors of the “tapering” are widely exaggerated.
NBER | X-CAPM: An Extrapolative Capital Asset Pricing Model
Survey evidence suggests that many investors form beliefs about future stock market returns by extrapolating past returns: they expect the stock market to perform well (poorly) in the near future if it performed well (poorly) in the recent past. Such beliefs are hard to reconcile with existing models of the aggregate stock market.
