Here are
the less-timely economics articles from the past week or so. You can get update
notifications by following MoreLiver on Twitter or Facebook. Contact me with any questions or suggestions!
Previously
on MoreLiver:
GENERAL
Zero-sum debate – Free exchange / The Economist
Economists are rethinking the view that capital
should not be taxed
What next for the IMF? – Economist’s
Forum / FT
The IMF membership remains then split into two camps: those governments that might tap the extra funds and those (including the US) that cannot conceive of any circumstances when they would do so. Not surprisingly, the latter are far from excited about contributing to increased lending IMF capacity. What must add to the latter’s fears is that European governments may be working on the assumption that their considerable representation on the IMF board will result in less demanding future IMF programmes for eurozone countries.
The IMF membership remains then split into two camps: those governments that might tap the extra funds and those (including the US) that cannot conceive of any circumstances when they would do so. Not surprisingly, the latter are far from excited about contributing to increased lending IMF capacity. What must add to the latter’s fears is that European governments may be working on the assumption that their considerable representation on the IMF board will result in less demanding future IMF programmes for eurozone countries.
Saving Imbalances and the Euro Area Sovereign
Debt Crisis – New York
FED (pdf)
AUSTERITY DEBATE
How to End This Depression – The
New York Review of Books
Krugman: The truth is that recovery would be almost
ridiculously easy to achieve: all we need is to reverse the austerity policies
of the past couple of years and temporarily boost spending. Never mind all the
talk of how we have a long-run problem that can’t have a short-run
solution—this may sound sophisticated, but it isn’t.
The Incredulity Problem – Krugman
/ NYT
In macroeconomics, the equivalent would be
people who “just can’t believe” that borrowing more can help the economy, or
that a fall in wages would actually reduce employment. What are they missing? Mainly,
I think, the closed-loop nature of macro. Our intuitions about how business-y
stuff works come from businesses or households selling their goods or labor to
an external market.
Europe is a mess. But it’s the type of mess that both the left and the right
think validates everything they’ve been saying about what we should -- and
shouldn’t -- do here in the U.S. “The right argues we have to cut deficits now
or we’ll be like Greece,” says Tom Gallagher, a principal at the Scowcroft
Group. “The left argues we can’t cut deficits now or we’ll be like Europe.”
The debt crisis: Spot the deleveraging – Buttonwood’s
/ The Economist
In reality
only US has deleveraged – everyone else has just gotten more public debt.
The Future of Capitalism – Milken
Institute / Global Macro Monitor
1h video: Niall
Ferguson / Harvard, Ana Palacio / Spanish Council of State; former Minister of
Foreign Affairs, Peter Passell / Milken Institute, Raghuram Rajan / Chicago
Booth School of Business
Strategic Briefing: Gov't Spending & The
Economy – The
Capital Spectator
HOUSING
Deutsche Bundesbank Discussion Papers by
Mathias Hoffmann, Michael U. Krause, Thomas Laubach
CENTRAL BANKS
The Information Content of Central Bank Minutes – Riksbank
(pdf)
Sveriges
Riksbank Working Papers by Mikael Apel and Marianna Blix Grimaldi
We measure the sentiment and tone of the
minutes of the Swedish central bank using an automated content analysis that
converts the qualitative information in the minutes to a quantitative measure.
We find that this measure is useful in predicting future policy rate decisions.
Just as there are asymmetric risks associated
with below-objective inflation when it comes to the Fed's growth and employment
mandate, there are asymmetric risks associated with above-objective inflation
when it comes to the price stability mandate.
Monetary policy developments – BIS (pdf)
Speech by
Mr Mervyn King, Governor of the Bank of England, on the 2012 BBC Today Programme Lecture, London, 2 May 2012.
Economic (in)stability under monetary targeting – Bank
of Italy (pdf)
Bank of Italy Working Papers by Luca Sessa
Monetary policy and the flow of funds in the
euro area – Bank
of Italy (pdf)
Bank of Italy Working Papers by Riccardo Bonci
Prudential lessons from the Global Financial
Crisis – BIS (pdf)
Presentation
by Mr Grant Spencer, Deputy Governor of the Reserve Bank of New Zealand, to the Financial Institutions of
NZ 2012 Remuneration Forum, Auckland, 3 May 2012.
Goodfriend Says Fed Not `Preemptive’ – BB (mp3)
BANKING
The Periodic Table of Bank Regulation and
Compliance – Alacra
Store
Alacra has released the beta version of a tool
to keep track of bank regulation and compliance in a clear and understandable
format. Presented as a Periodic Table, the beta version includes 76 “elements”
representing major regulations and regulators.
Bank regulations: Balancing the books – The Economist
Rules are hurting profits; but banks still have
a lot of fat to cut
Speech by Dr Andreas Dombret, Member of the
Executive Board of the Deutsche Bundesbank, at the Institute for Law and
Finance, Goethe University, Frankfurt am Main, 3 May 2012.
Shadow Banking in the Euro Area – An Overview – ECB (pdf)
Although overall shadow banking activity in the
euro area is smaller than in the United States,
it is significant, at least in some euro area
countries. This is also broadly true for some of
the components of shadow banking, particularly securitisation
activity, money market funds and
the repo markets.
Modelling the liquidity ratio as
macroprudential instrument – DNB
(pdf)
Netherlands
Bank DNB Working Papers by Jan Willem van
den End and Mark Kruidhof: The Basel 3 Liquidity Coverage
Ratio (LCR) is a micro prudential
instrument to strengthen the liquidity position of banks. However if in extreme
scenarios the LCR becomes a binding constraint, the interaction of bank
behaviour with the regulatory rule can have negative externalities.
Capital regulation, liquidity requirements and
taxation in a dynamic model of banking – Bundesbank
(pdf)
Deutsche
Bundesbank Discussion Papers by Gianni de Nicolò, Andrea Gamba, Marcella
Lucchetta