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Can President Putin explain how Osborne conspired to bring down the oil price?
Telegraph
The UK is the real winner in this Christmas story
Related: Katie Couric and the Net Petroleum Exporter Myth
Bill McBride / Calculated Risk
To understand what the general public is hearing about oil, I watched a Yahoo video yesterday with Katie Couric explaining the decline in oil prices.In general the piece was very good. Couric started by explaining that the decline in oil prices could be explained in two words: Supply and Demand. ...
Related: Oil price crash is 'fault' of non-OPEC members, says Saudi oil minister
Alan Tovey and news agencies / Telegraph
Prices will recover from current lows, says Saudi oil boss, as he dismisses claims crash in cost of oil is politically motivated
 
One Bank To Rule Them All
Frances Coppola / Coppola Comment
The ECB has released this letter from its former President, Jean-Claude Trichet, to the Spanish Prime Minister in August 2011. It is excruciating reading. The letter starts with a reminder about the Spanish government's responsibilities:We recall that the Euro area Heads of State or Government summit of 21 July 2011 ...
Related: Creative accounting is nothing new for the Eurozone
Alex Harrowell / Fistful of Euros
Frances Coppola blogs on the Austrian government's crash investigation into the failure of Hypo Alpe-Adria (latest detail - the biggest participant in the run on the bank was its garantor), also known as Haiderbank, and on the related topic of ... Continue reading →
Related: Erwan Mahé: does the Maastricht treaty still apply when the ECB does not deliver?
Merijn Knibbe / Real World Economics
Guest post by Erwan Mahé Free summary (by M.K.): Erwan Mahé has a very important question. Central Banks are, de facto, a branch of government (forget about the legal details). The employees, including the head of the bank, are civil servants. Like other branches of government the central bank has ...
 
Inflationistas and liquidity trappers
Scott Sumner / Money Illusion
For six years Paul Krugman has been engaged in an intellectual war against the forces of evil on the right. Those who claim that monetary stimulus would lead to high inflation. Over that same period I've been engaged in a three-way struggle; market monetarism against the forces of misguidedness on ...
 
Putin's Groundhog Day: The Russian people keep paying the price for their leaders' incompetence
Matt O'Brien / Wonkblog
In the bad old days, Russia's facsimile of an economy would crash every time the price of oil did. The government would go broke, the currency would collapse, and ordinary people would see their standard of living evaporate. Now if all this sounds familiar, that's because the bad old days ...
Related: WaPo Reports on Vladimir Putin's Economic Miracle in Russia
CEPR
A chart accompanying a Washington Post article on Russia under Putin tells readers that Russia's per capita GDP rose from $1,771 when Putin took power in 1998, to $14,611 in 2013. This would imply an increase in per capita GDP of 725 percent in 15 years for an annual rate ...
Related: (Understated) claims about Russia
Tyler Cowen / Marginal Revolution
Here is a new research paper by Voskobvoynikov and Solanko, but dating before the collapse in oil prices: Based on newly available data, we argue that multifactor productivity increases over the period 1995-2008 generated only about a half of Russia's GDP growth, a smaller increase than most previous estimates. Further, ...
 
Do falling oil prices raise the threat of deflation?
James_Hamilton / Econbrowser
The spectacular drop in oil prices means that inflation is going to fall even further below the Fed's 2% target. Does that raise any new risks for the economy? I say no, and here's why. In economists' theoretical models, inflation usually is often thought of as a condition in which ...
Related: Why a 2% Inflation Target; Janet Yellen Was Right
Tim Worstall / Forbes
An interesting little footnote to one of the big questions facing central banks around the world. What target should we be aiming for and once we've decided what sort of target it should be then what should the level of that target be? More specifically, since interest rates are the ...
Related: Why the Fed Should Follow Rules
Alexander Salter / Mercatus
Expert Commentary How should monetary policy be conducted? What previously was a question of interest only for a subset of economists has exploded into popular debate since the 2008 financial crisis. This, no doubt, is due to the Federal Reserve's unprecedented activities during the crisis. Some, such as Stanford's John ...
 
The Profit on the TARP and Bernie Madoff
CEPR
For folks like Timothy Geithner it is a big thing to boast about the profit the government made on the TARP. We got more of this children's story in the NYT yesterday in an article reporting on the end of the TARP. It is worth understanding the meaning of profit ...
 
China and the United States: Who Is Number One?
CEPR
A NYT article on China's growth seems to have gotten data from the International Monetary Fund backward. It told readers: "On the purchasing power basis, the I.M.F. forecasts the American economy at $17.6 trillion this year, while China's is estimated at $17.4 trillion." That's not what my I.M.F. data say. ...
Related: Yuan Keeps Falling
WSJ
Bloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsBloomberg NewsYuan's Slide Gathers Steam The weeklong decline in the yuan accelerated Friday, pushing the Chinese currency to its lowest level in five months. Yuan's slide gathers steamYuan's Slide Gathers Steam-- Update Yuan Keeps Falling The weeklong ...
Related: China eases rules for foreign banks
FT
Move largely symbolic as Beijing makes good on economic reform promises
 
House prices falling in a third of UK
FT
Findings suggest tighter mortgage lending rules have cooled market boom
Related: Grim year for UK profit warnings
FT
At almost one in five, the level of warnings is at its highest since the 2008 crisis
 
Rajan fights for RBI's autonomy amid rate cut rants
Times of India
Raghuram Rajan says he is neither Superman nor James Bond, but he appears to have emerged as a 'lone ranger' - fighting persistent rate cut demands, attempts to weaken RBI and even rumours about he being 'kicked up' from the Mint Street high seat.
 
Christmas reading: McCloskey on Piketty
jamesz / Visible Hand
It's taken me a month to read it but Deirdre McCloskey's essay on Piketty's Capital is just as persuasive as you'd expect. Print it and read it with your family over Christmas! The review doesn't break any new ground but it is eloquent and engaging. Her central themes are: The ...
Related: America Needs a Raise, and a Wage Boom May Be Close
Sam Becker / Wall St. Cheat Sheet
With stagnant wages and the middle class still struggling, America could definitely use a raise. Is there reason to believe wages may go up soon?
 
Greek PM offers 2015 election once bailout complete
CNBC
Samaras urges lawmakers to elect a new president and offers prospect of general elections.
Related: Who lost Greece
Alexis Papachelas / Kathimerini
If Greece collapses much will be said about where the fault lies. Sure, we all know the failings of Greek politicians. That said, much of the blame lies with outsiders who pushed Greece beyond its limits. From the start of the crisis, Berlin sought to get... ...
 
The year the sun set on the Bric economies
Telegraph
As the emerging markets' bubble burst, Western capitalism defied the pessimists, reports Jeremy Warner
Expand sublinks   Also:  Barrons
 
Bank of Japan keeps record easing
South China Morning Post
The Bank of Japan maintained unprecedented stimulus, as governor Haruhiko Kuroda's bid to stoke inflation faces increasing challenges from the plunge in oil prices.
 
Right-Wing Protests Against Immigration Are Growing in Germany
Timo Lochocki / U.S. News
Anti-immigrant protesters are gaining a foothold in German politics.
 
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One Bank To Rule Them All
Coppola Comment
Inflationistas and liquidity trappers
Money Illusion
The Profit on the TARP and Bernie Madoff
CEPR
Do falling oil prices raise the threat of deflation?
Econbrowser
Can President Putin explain how Osborne conspired to bring down the oil price?
Telegraph
Greek PM offers 2015 election once bailout complete
CNBC
House prices falling in a third of UK
FT
Creative accounting is nothing new for the Eurozone
Fistful of Euros
Why a 2% Inflation Target; Janet Yellen Was Right
Forbes
Rajan fights for RBI's autonomy amid rate cut rants
Times of India
What's this?
Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
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