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Helicopter money as a policy option

Lucrezia Reichlin, Adair Turner, Michael Woodford, 20 May 2013With persistently weak economic conditions becoming the norm in Europe, economists are considering increasingly unconventional policy options. One tool that has yet to be taken out of storage is ‘helicopter money’, i.e. the overt monetary financing of government deficits.

"A random tour through some scaling laws"

"This, of course, is where the mystery of the game of dimensional analysis [pdf] lies: which variables should be invited to the party?" 

Warnings

This week, Israeli Prime Minister Netanyahu flew to Russia in an attempt to dissuade Putin from selling Syria the S-300, a long range surface-to-air missile system.

Research Notes: Fiscal Drag and Upward Revisions to Q2 GDP

Some brief excerpts from two research notes released this week. The fiscal drag is hitting hard right now and is expected to fade towards the end of the year. Right now it looks like Q2 is tracking close to 2% GDP growth. From economist Alec Phillips at Goldman Sachs:

Rememberances of Alan Abelson

Last week, we remembered Barron’s columnist and editor, Alan Abelson (A Few Words About Alan Abelson). This week, Barron’s gathered various commentary from Colleagues, Wall Street Friends and Readers to remember Alan Abelson. It is a long piece filled with words from many readers.

BIS and IMF attacks on quantitative easing deeply misguided warn monetarists

Monetarists across the world warn that the International Monetary Fund and the Bank for International Settlements are making an historic error by calling for a withdrawal of emergency stimulus before a full global economic recovery.

Farewell to Namawinelake

See here. Update:  an ‘explanation’ from Jagdip Singh here.

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