23rd January 2012
While emerging markets have far outperformed industrialized countries in recent years, many investors are concerned that these countries could be due for a fall in 2012, triggered by Europe's woes or a hard landing in China. But according to Jeffrey Frankel, the timing of emerging-market crises "suggests that they might be right to worry." Project Syndicate
Gavyn Davies tells the story of "probably the greatest political battle in the history of central banking" in which President Harry Truman, at war in Korea, failed to force the Federal Reserve to maintain a 2.5% limit on treasury yields, thus implicitly financing the war effort through monetisation. Financial Times
David Smith thinks that better growth prospects and relatively high inflation should knock the Japanese comparisons on the head. "Somehow, though its critics will not have it." Economics UK
Nick Rowe gives three reasons why we should talk about monetary and fiscal rules, not actions (Wonkish). Example: "Because the effects of the current action depend on whether or not it was expected." Worthwhile Canadian Initiative
Gregory Mankiw presents four principles of tax reform that "most economists would endorse."These include: Taxing bads rather than goods and taxing consumption rather than income. New York Times
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