1. Krugman starts another interesting debate – Productivity difference between US and Europe. It has been argued for sometime that US is more productive that Europe. Research says half of the difference is because of the financial service industry. Then he adds:
And given recent events, are we even sure that the expansion of the financial system was doing anything productive at all? In short, how much of the apparent US productivity miracle, a miracle not shared by Europe, was a statistical illusion created by our bloated finance industry?
2. WSJ Blog points Fed Bal Sheet expands again
3. Mankiw has a great cartoon on economists.
4. Rodrik says recovery going to be difficult
5. FMB on inflation vs deflation
6. CTB takes on Krugman. Somewhere down the line the fancy for finance stays
7. MR points to latest on financial crisis
8. TTR says we should welcome boredom in banking