- The FOMC maintains its rates. One highlight is that certain mortgage backed securities held by Fed are maturing. Fed will use this money to buy Treasury Bonds. So, Fed balance sheet will not shrink. NY Fed has released the guidelines for this reallocation
- How far behavioral economics has come, and how far it still has to go, part II
- Indian government calls H1B visa fee hike discriminatory
- Ezra Klein has a superb post on When does the Laffer curve bend?
- Ajay Shah is back to his criticism of RBI. Well, it all sounded good before the crisis (not to this blog even then). Not now. The papers he points are just a one sided view. There are so many papers questioning the monetary policy framework. It requires something to make a statement like this after seeing and reading so much about issues with economics:
We continue to be in a situation where RBI’s thinking on monetary policy is quaint and out of touch with world class knowledge of economics.