Assorted Links

• China has released a statement on making its exchange rate flexible. Here are a few discussions
  • Gulzar says the move comes with rising labor unrest in China and could be difficult. As usual very good insights from Gulzar
  • Gold Standard calls it a A ‘flexible’ Saturday afternoon
  • IMF statement on the move
  • ECB statement on the move
  • WSJ Blog has some initial reactions from econs
• Delong and Cowen war of words
• Krugman gets the global economy prize awarded by Kiel Institute, Germany. He has an interesting conversation with Germans 🙂
• Mike Moffatt of Worthwhile Canada Blog has a superb analysis on Canada’s fiscal austerity program. Krugman had recently argued that Canada gained despite fiscal consolidation because of 2 reasons – loose monetary policy and currency devaluation. Moffaat says yes mon pol was loose but currency did not devalue. Infact currency moves in opposite direction.
• Hamilton on inflation or deflation in US?