Econintersect: Click Read more >> below graphic to see today’s list.
The top of today’s reading list says the Eurozone balanced budget idea is a disaster …….. and the last article covers the debate about whether QE is actually deflationary.
- The Eurozone Balanced Budget Disaster (Philip Arestis and Malcolm Sawyer, Triple Crisis) Hat tip to Naked Capitalism.
- Can Chinese steel production do it again in 2014? (Houses and Holes, Macro Business)
- A Prediction: Bitcoin Is Doomed to Fail (Edward Hadas, The New York Times)
- Morgan Stanley: China to struggle in 2014 (Houses and Holes, Macro Business) The Asia/Pacific region, dominated by China, ia projected to see GDP growth average around 6.2% 2012-2015, down more than 30% from the 2003-2007 level.
- QE trap – but it doesn’t have to end in tears (Mike Dolan, The Age, Business Day)
- Mario Seccareccia: Larry Summers, Secular Stagnation, and the Crisis of the New Consensus Model (Mario Seccareccia, Naked Capitalism) A critque of Larry Summer’s famous IMF talk as a failing to go beyond the “old Wicksellian loanable funds model.” See also the next article. See also GEI Opinion for a discussion of Paul Krugman’s problem with loanable funds and GEI News for a video of the Summers talk and some editorial comments.
- Servaas Storm: Some Remarks on “Larry Summers, Secular Stagnation and the Crisis of the New Consensus Model” (Servass Storm, Naked Capitalism) Where is the fiscal spending side of the Summers-Krugman discussion? See also the preceeding article.
- Are Alzheimer’s and diabetes the same disease? (Jessica Griggs, New Scientist Health)
- Governments will struggle to control Bitcoin (Unconventional Economist, Macro Business)
- Scarce Collateral, the Term Premium, and Quantitative Easing (Stephen D. Williamson, Washington University in St. Louis) Conclusion: The author states QE lowered inflation, contrary to stated Fed objectives, and he produces a model to explain why. This has produced a firestorm of objections, summarized by David Beckwith, who offers a Williamson-countering graphic showing core PCE (personal consumption expenditure) increasing 6-12 months following QE1 and QE2, but less responsive for QE3.