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Against Economics – Book Review of “Money and Government: The Past and Future of Economics” (The New York Book Review) David Graeber argues that the mainstream economic thinking and policy is broken yet continues to be used. [Bearish economists!]
Learning and Misperception: Implications for Price-Level Targeting (Fed Board of Gov) Fed argues against adopting a temporary price-level targeting strategies during a recession. [Bearish rates]
The Global Equilibrium Real Interest Rate: Concepts, Estimates, and Challenges (Fed Board of Gov) Fed argues that they may have overestimated how high real rates should be as they didn’t correctly incorporate global trends. [Bullish rates]
Fed’s Push into Funding Markets Stirs Fears of Widening Role (Politico) Questions whether the FED’s latest effort to intervene in the funding market can lead to the Fed becoming the whole U.S. money market. The expectations that the FED will protect banks in volatile markets that are inconvenient to monetary policy, can potentially lead to adverse risk-taking by the banks. [Bullish banks]