ALL BLOG POSTS
This is Scott Sumner ("A New View of The Great Recession"):
The big story of the week in the US has undoubtedly been the bankruptcy of the city of Detroit. I should stress that I have next to no insight into Detroit's fiscal situation. However, the bankruptcy is nonetheless a reminder of the risks moral hazard.
Only a couple of days ago I was complaining that the Turkish (and the Polish) central bank(s) have been intervening in the currency markets. My complains of the Turkish central bank's fear-of-floating and what seemed to be politically motivated monetary operations were then followed by the Brazilian central bank that hiked interest rates - officially to curb inflationary pressures, but what to me very much looked like an effort to prop up the Brazilian real.
This is from Bloomberg.com:
It is still vacation time for the Christensen family. So far we have been extremely lucky with the weather in Skåne in Southern Sweden. There has also been time for a bit of blogging. So here are a bit more random and disorganised thoughts on money and the world in general – actually not too much on money. So consider this yet another attempt to throw a curveball.
In my recent post about Keynes' "A Tract on Monetary Reform" I quoted Brad Delong for saying that Tract is the best monetarist book ever written. I also wrote that I disagreed with Brad on this.
(Warning: This has nothing to do with monetary policy issues)
Brazilian Finance Minister Guido Mantega likes to blame the Federal Reserve (and the US in general) for most evils in the Brazilian economy and he has claimed that the fed has waged a 'currency war' on Emerging Market nations.
I have often been puzzled by central banks' dislike of currency flexibility. This is also the case for many central banks, which officially operating floating exchange rate regimes.