Key business sector gauge at highest level since 2006. Brad DeLong: Obama economic team has exceeded expectations. Lending in Europe contracts again. Leonhardt is optimistic on the effects of healthcare rationing. Dissecting the Fed's plan to offer CDs to banks.
Continuing a tradition of mine, here is a shamelessly subjective list of the most noteworthy research which came out in the last year: Putting a new spin on the idea of sticky wages, Lena Edlund, Joseph Engelberg, and Christopher A.
Research: Those in positions of power are more likely to cheat. Tyler Cowen: Maybe Fed isn't targeting inflation because it would hurt bank recovery. Charts of the day: Some financial indicators return to pre-crisis levels. Felix Salmon: Why banks will be fine if we cap credit card rates. How much did the Tiger Woods scandal cost his endorsers?
How much are Iran's economic woes a factor in the continued unrest? How low rates are making saving an unattractive option. Fed gets a little more specific on plans to mop up excess reserves. Chart of the day: Paying more and getting less for healthcare in the U.S. And TNR's Franklin Foer and Noam dissect Obama's nudgeocracy.
Examination shows New Century didn't relax its lending standards. Should we be optimistic about the increase in temp hiring? Justin Fox is leaving Time for the Harvard Business Review. The young may be thriftier than we thought. Why we should forgive the Fed for screwing up its oversight of banks.
There's been much hullabaloo over the Fed's ability to quickly remove the hundreds of billions of dollars it has pumped into the financial system after the economy recovers, but before the increased money supply sparks inflation. I and others have argued against panic, pointing to the Fed's new ability to pay interest on reserves as way to divorce money from monetary policy. And now a new study from New York Fed economists Morten Bech and Elizabeth Klee gives some quantitative support for this view: ...the results in this paper suggest that a graceful exit is indeed possible.
Bernanke explains (unconvincingly) why the Fed won't consider an inflation target. Bob McTeer on why we should've been more optimistic about TARP. Paul Smalera takes a shot at refuting Matt Tiabbi's latest. On the limits of Paul Samuelson's theories. The WSJ obviously hasn't been reading my posts on walkaways. Does publicizing suicides cause more people to end their lives?
Bernanke first Fed chair to be named Time's Person of the Year. Luigi Zingales wants targeted Tobin tax on short-term debt. Andrew Gelman rips into Steve Levitt's statistical thinking. Citigroup given huge tax break in deal to exit TARP. Does economics need peer-reviewed journals? Nearsightedness is 66 percent higher now than in the early 70's.
Poll: 50% say they are worried about falling out of their social class. Fiscal stimulus can work very well when interest rates are close to zero. But not everyone agrees. Did Canada avoid a housing crash because of better lending standards or better monetary policy? A case against the death of the Great Moderation. How to look hot in online photos.
Former Fed staffer criticizes both Greenspan and Volcker. Links roundup on Paul Samuelson's death. Fama and French on whether stocks are more volatile in the long run. Columbia Prof. Charlie Calomiris's bank is taken over by the Feds. Why elder care involves women taking care of other women.