Sunday, November 2, 2008

Reads of the day

The week in pictures from Econompicdata

Brad Setser extends his take on central bank balance sheets from the Fed to the Chinese Central Bank.

Equation of the day: Eastern Europe 2008= Southeast Asia 1997. If you are interested in this, the Economist had an in-depth article on Eastern European economies two weeks ago.

Chart of the day: US GDP net of mortgage equity withdrawals.

If you know the monetary implications of what's going on between the US Treasury and the Fed & the Fed's everly expanding balance sheet, Rebecca Wilder has a good explanation of monetization and sterilization.

The latest FRBSF Economic Letter look at monetary policy and asset prices. Of course, the trillion dollar question is whether the Fed (or any central bank for that matter) should try to pop asset price bubbles. And on that the article is inconclusive (surprise, surprise)...

One of the emerging discussion topics is whether deflation is on the way. Roubini thinks so, whereas Adam Posen is doubtful about deflation. Posen's points make sense, but Econometrics, financial markets and Roubini's recent predictive score tend me to lean towards the deflation argument.

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