1st December 2011
The Guardian's editorial is skeptical about the coordinated action by central banks around the world to offer dollar loans at cut-price interest rates to cash-strapped banks. "Loans, even dauntingly large loans to tide banks over, do not sort out the root troubles in the eurozone." The Guardian
"When the Cameron government came in, it was fully invested in the doctrine of expansionary austerity." Now it turns out that contractionary policy is contractionary after all. As a result, despite all the austerity, deficits remain high. So what is to be done? More austerity! New York Times
Yu Yongding suggests that bearish sentiments that China will hit a hard landing in 2012 is unlikely to come to fruition despite massive local government debt, a housing bubble and worries that its underground credit network will collapse. Project Syndicate
With Dr. Blinder currently writing a historical analysis of the 2007-08 financial crisis, Rohan Mascarenhas asks him whether economists and economics as a subject really know enough about the financial sector. Russell Sage Foundation
Richard Blackden wonders whether more QE by the Fed will shield the US against the crisis in the euro zone. "It seems far fetched to believe that it could significantly weaken the dollar against the euro, a currency whose existence is now a matter of daily debate." The Telegraph
Got any other suggestions for what we should be reading? Tell us below?
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