201004.30
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Robert Mundell on the Financial Crisis

Robert Mundell is not widely known outside economic circles but is arguably one the greatest economist of the second half of the twentieth century. Quite simply he’s gotten everything of any economic importance over the last 40 years right. More importantly, he got things right in advance so that policy makers could do something rather…

201004.28
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China Moving to Convertible Yuan

While our politicians pander to the economically ignorant with protectionist threats, the Chinese just slowly go about their business of eating our lunch by thinking long term. Chuck Schumer thinks he wants the Chinese to raise the value of the Yuan (renminbi) but he should be careful what he wishes for. The Chinese are moving…

201004.28
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FOMC Statement

The FOMC statement in full: Information received since the Federal Open Market Committee met in March suggests that economic activity has continued to strengthen and that the labor market is beginning to improve. Growth in household spending has picked up recently but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight…

201004.26
4
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Monopoly Profits

One of the things that needs to be resolved in order to stabilize our financial system is the issue of “too big to fail” (TBTF).  Personally, I don’t believe this is an issue becaue I don’t believe there is any such thing as TBTF, but since others seem concerned, regulatory reform needs to address it.  Unfortunately,…

201004.26
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A Buy Signal for Commodities?

Interesting paper on adding commodities to your portfolio after the Fed starts a tightening cycle. Via the WSJ: The Federal Reserve raised a key interest rate in February, and market gauges are pointing to more increases in coming months. Does that mean it is a good time to buy commodities? According to new research, the…