- Krugman points why despite Bank of Japan increasing the monetary base, Japan faced deflation
- Conference on Nigeria Central bank’s 50 years. Some great looking ppts and papers
- Bank of Japan’s timely conference on Future of Central Banking under Globalization. Most papers are still not linked
- James Bullard, St Louis Fed President says Europe crisis will not result in second round of recession. WSJ Blog has a summary
- RBI continues its good work of becoming more transparent. It discusses briefly the proceedings of 23rd Conference of the State Finance Secretaries. Earlier these conferences just went by.
- Nudges Blog points to a short new paper by Supreet Kaur, Michael Kremer, and Sendhil Mullainathan. In this authors look at how people prefer to be paid. There is also an excellent clock which is a must for every office
- John Taylor points to a paper questioning the fiscal multiplier.
The paper is quite technical, but the bottom line summary is that a one percent increase in government purchases (as a share of GDP) increases GDP by a maximum of 0.7 percent and then fades out rapidly. This means that government spending crowds out other components of GDP (investment, consumption, net exports) immediately and by a large amount.