EUROPE
Irish exit into the
unknown – Presseurop
After three years of public sector spending cuts, Ireland looks set to exit
the EU-ECB-IMF bailout programme on December 15, but at what cost? The country
remains mired in depression and the economy is now hollowed out.
How not to run fiscal
policy: more lessons from the Eurozone – Mainly
Macro
On Wednesday, CDU/CSU and SPD will enter coalition negotiations
UNITED STATES
SHUTDOWN
/ DEBT CEILING
Over-reliance on debt
finance has strained the fabric of the democracies that it has helped to fund,
with government finance increasingly determined not by electoral cycles and
political deliberation, but by repayment schedules. Europe and the US must devise a better way to manage debt
– one that does not undermine self-governance.
Bloomberg Consumer
Confidence: Most Pessimistic About Economy In Two Years – ZH
The sixteen day political exercise in Washington is over. The
costs are being tallied. There are economic and political costs that are
worth considering.
No, we didn’t get rid
of the debt ceiling forever – WaPo
Economists React:
Shutdown Dysfunction ‘Hardly a Shocker’ – WSJ
The Long March of the
American Right – NYT
Simon Johnson: Last week has provided additional insight into how and
why the current governmental arrangement known as the United States of
America will end.
When Is the Next X
Date?
– Macro
and Markets
The Hero of the
Shutdown: Our Friend FRED – WSJ
FEDERAL RESERVE
Kiss Tapering Goodbye – ZH
Fisher Says Fed
Stimulus Won’t Work Amid Fiscal Fog – WSJ
warned that there is a limit to how much the central bank can do to keep
markets and the economy on an even keel while fiscal authorities wrangle over U.S. finances.
Evans: Fed To Remain
Accommodative for Some Time to Come – WSJ
Now isn't the time to
pull back on the central bank's easy money policies.
George: Fed Should
Start to Cut Bond Buying, but Gradually – WSJ
George renewed her attack on the central bank's aggressively easy
monetary policy, saying the institution should start cutting its bond-buying
stimulus.
OTHER
EMEA Weekly – Danske
Bank
EM Bond Snapshot - October 2013 – Danske
Bank
Good Managers Come
Out of the Closet – The
view from the blue ridge
The more active and small funds beat the markets
In Praise of Debt
Ceilings – Project
Syndicate
Hans-Werner Sinn: The recent wrangling about raising the US government’s
borrowing limit underscores the hazards posed by excessive state indebtedness.
Governments nowadays are essentially running gigantic redistribution machines
that steer funds from taxpayers to transfer recipients and other beneficiaries
of public expenditure.
Modeling the “safe
asset mechanism” – alphaville
/ FT
Both quantitative easing and forward guidance are unlikely to be very
effective. The authors also add new dimensions to the commonly accepted New
Keynesian wisdom on liquidity traps and fiscal policy, which they only partly
agree with. The paper discusses a model of what the authors call a “Safe Asset
Mechanism” — essentially a safe asset shortage characterised by a period of
“excess” demand for safe assets.
Unconventional
monetary policies and central bank independence – BIS
William C Dudley, President and Chief Executive Officer of the Federal
Reserve Bank of New York, at the Bank of Mexico international conference
"Central bank independence - Progress and challenges", Mexico City,
15 October 2013.