First of all, I’m a big fan of the Fed and in particular Bernanke. I think he saved the day
protectionism is on the creep. The US has a bill to increase the costs of chinese goods, making the lot of their broke consumers worse; China retaliates by raising the price of chicken (~36m live on less than USD$2 per day).
Alan Viard’s ponderous and boring case for the full extension of the Bush tax cuts contains some key facts
UK Labour booked a long date with opposition last night; the union movement pressed red-ed Miliband – the son of Marxist Ralph Miliband – to the leadership of their party. There is a risk that the various nationalistic-populist movements will mutate into a Smoot-Hawley policy error.
My conjecture is that the various movements reveal a little about the soul of their nations. The US tea party movement is unique — it is a small governement individual freedom movement. These core values are the key to US exceptionalism, and the reason I think the USA will fully recover from the financial crisis.
There’s a lot of crap being written about monetary policy at the moment. Take this from the FT, which says
I doubt the Democrats will extend the bush tax cuts if they get thumped in November. While long run consequences are likely to be unimportant, the short run consequences are worrying.
Scott Sumner at the money illusion blog has been writing some interesting stuff about negative rates and policy. I was