(PLEASE SEE DAVID BECKWORTH)
Depending on your vantage, the bad news keeps rolling in, with weak labor and growth figures in the U.S., UK and eurozone of late; alternately, emerging economies are fortified to a greater degree, policy making orthodoxy has undergone a transformation and data revisions have proven positive.
- Ed Dolan looks at healthy corporate profits amid weak Q2 growth in the U.S., drawing a clear arrow for where fiscal policy must go.
- Rebecca Wilder writes that internal devaluation is taking a heavy toll in the eurozone periphery, where unemployment is running high, with negative implications for budgets.
- Speaking to the UK’s skirting of a double-dip recession, David Smith says that either the forces pushing the economy down are even more powerful than thought, or monetary policy has lots its potency.
- Michel Aglietta and Bilge Erten ask whether emerging economies are better equipped to weather eurozone headwinds given the financial safety acquired since 199-2002 and counter cyclical macro policies.
- Danny Quah argues for greater nuance in looking at UK fiscal policy, especially between the “growth” and “austerity” camps, noting the lag between policy action and effect.
- Steven Strauss writes that Benjamin Netanyahu’s strident speech at the UN had no influence on American policy, but it was good politics at home in Israel.
- As the euro and other major currencies got the jitters recently, Marc Chandler focuses on weak global growth, policy responses and political developments.
- Otaviano Canuto presents lessons from Chile for Mongolia following a downturn in global demand for the latter’s mineral-dependent economy.
- Richard Wood looks at how policy makers are working to stoke aggregate demand, among other objectives, given the changes in orthodoxy post-global financial crisis.
- Ricardo Cabral discussed the “largest peacetime external debt crisis the world has ever seen,” emphasizing the design of the Eurosystem monetary policy instruments and procedures over the loss of exchange-rate risk.
- Fabius Maximus presents evidence that very little progress has been made in the global economy post-crisis, offering one key development.
- David Beckworth argues that there is, indeed, excess money demand in the global economy, weighing in on Larry White’s primer.
- In his despatch from Turkey, Emre Deliveri talks Reserve Option Coefficients, suggesting that such a tool could increase banks’ foreign borrowing.
And now, the best of the rest…
Financial and Markets
- Is the Fed Buying Up All the Treasury Debt? by David Beckworth
- How Long Can These Markets Run on QE? by Barry Ritholtz
- Managing Revision Risk by James Picerno
- Review of Major Asset Classes, September 2012 by James Picerno
- Fidelity’s Bond Funds Now Larger Than Equity Offerings by Barry Ritholtz
- The Debate About Jobs by Jeffrey Miller
- If QE Causes Commodity Price Inflation… by Tim Duy
- The Week Ahead: Wednesday’s Presidential Debate and Friday’s Jobs Report by Robert Reich
- Benchmark Revisions and Nonfarm Payroll Employment since January 2009 by Menzie Chinn
- How Clearly Do We See the Rising Inequality in America? How Do We Feel About It? by Fabius Maximus
- Scientists? Engineers? How about Gardeners? by David E. Altig
- Contradiction Du Jour: Durable Goods Orders vs. Jobless Claims by James Picerno
- Plosser Opposes the 1933-37 Expansion by Tim Duy
- Lost Decades: Two Years Later by Menzie Chinn
- The Two Major Views About Why Romney is Losing, and Why the Second is More Convincing by Robert Reich
- Why I Agonize About The Zero Bound by Tim Duy
- Regional Feds Weigh In on U.S. Labor Situation: Time to Worry About the Employment Mandate by EconoMonitor
- Excuses Not To Do More by Tim Duy
- Bush and Blair Aren’t Guilty of War Crimes in Iraq by Steven Strauss
- A Few Observations about Europe on Hump Day by Marc Chandler
- The Debate About Jobs by Jeffrey Miller
- Ten Observations as the Week Winds Down by Marc Chandler
- This Can’t Be Tyler Cowen by David Beckworth
- Wynne Godley and the Eurozone’s Eventual Sovereign Crisis by EconoMonitor
- On Manichean Worldviews and Effecting Change by Yves Smith
- Quote of the Day From The Economist’s Charlemagne: ‘Stitch by Stitch’ by EconoMonitor