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Saturday, November 9

9th Nov - Weekender: Best of the Week

Best article links selected from the ending week’s posts. Last week’s edition here.

Autumn forecast 2013EC
EU economy: Gradual recovery, external risks

The ECB’s easing dilemmaFT
Given the overnight market rate is already as close as possible to the ECB’s zero rate corridor floor, it is the levels of market liquidity and forward rates that are likely to determine how easy eurozone monetary conditions are, including the euro’s exchange rate

No end to the euro crisis in sightFT
The scale of the required adjustment is enormous and the IMF does not believe it will happen

Worry about the euro, not the EUFT
The union is not compatible with a single currency in the long run

Italy's Mr Euro urges Latin Front, warns Germany won't sell another Mercedes in EuropeThe Telegraph

Bullard: The Tapering Debate: Data and ToolsThe Big Picture

Fed’s Framework for Monetary Policy –Recent Changes and New QuestionsFED
…some have suggested that the sustained period at the effective lower bound points to the need for central banks to establish a different policy objective, such as a higher inflation target or a nominal income target. We use our small-scale model of the U.S. economy to examine the potential benefits and costs of such changes. We also discuss the broad issue of how central banks should integrate financial stability policy and monetary policy

Blogs review: the comparative performance of fixed and flexible ER regimesBruegel
Andrew Rose recently published a provoking paper, which shows that the choice of the exchange rate regime has had little influence on economic outcomes in the Great Recession. While the empirical analysis of the paper excludes EMU countries, this result has challenged the consensus that life outside the euro would have been easier for periphery countries.  Paul Krugman even wrote a new paper with a full-fledged New Keynesian model to counter the argument and to show that the effect of a sudden-stop under a floating exchange rate ought to be expansionary.

The IMF Annual Research ConferenceIMF
Economics of Crises―Past Experiences and Present Travails

Suomen suurpankit näyttävät vahvemmilta kuin ovat Jan Hurri / Talsa
EKP tarkastaa euromaiden suurimmat pankit – ja arvioinee vuoden kestävissä testeissään pankkien taseet pääosin riittävän vahvoiksi. Taloussanomien tarkastelu kertoo Suomen suurimmista pankeista jo nyt sen mitä EKP ei tohdi kertoa edes ensi syksynä: pankit eivät ole puoliksikaan niin vahvoja ja vakavaraisia kuin näyttävät olevan.

Ranskalaisprofessori: Ainoa mahdollisuus on antaa euron hajotaHS