1. Fed cutthe fed funds rate and the discount rate by 25 bps in the FOMC meeting(see the difference here) . FFR is now 4.5% and discount rate is 5%. Only Koenig (Kansas City Fed President) dissented. WSJ Blog points to Economists’ reaction.
WSJ Blog has some excellent commentaryon the build-up to the rate cut. Strong employment and GDP numbers were released before the meeting and it was felt Fed might not cut rates. But Bernanke had other factors in mind.
WSJ Blog also pointsto good analysis on Bernanke’s term so far.
2. PSD Blog points to a map showing WB lending.
3. Ajay Shah isn’t happywith the way SEBI handled capital flows. He points to some good articles.
My take is economists love to criticise government for whatever it does. Policy-making is all about trying to find the best solution given the equally difficult choices to choose from which mostly lead to dilemmas. There have been many a economist fail when it comes to making right policies be it in finance be it real economy. So it is not easy when it comes to making policies. It is high time we understand this reality.