3 notable items from across the webPosted: August 31, 2011
I will try to get into a more frequent posting habit, and avoid weeks off when possible. Here are some reads I found interesting.
1. Ezra Klein takes a look at the academic work of Alan Krueger, the new chairman of the Council of Economic Advisers.
This leads us to the third big point: the dire consequences of soaring risk aversion, against the background of such economic fragility. In the long journey to becoming ever more like Japan, the yields on 10-year US and German government bonds are now down to where Japan’s had fallen in October 1997, at close to 2 per cent (see chart). Does deflation lie ahead in these countries, too? One big recession could surely bring about just that. That seems to me to be a more plausible danger than the hyperinflation that those fixated on fiscal deficits and central bank balance sheet find so terrifying.
3. Spencer Ackerman via Wired Danger Room on talks with the Taliban