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The WSJ reports that following this week’s strong dollar comments, Treasury’s Tim Geithner advocates a global exchange-rate agreement.
At NRO, Larry Kudlow wonders if Sec. Geithner is serious about wanting a stronger dollar.
On The Kudlow Report, David Goldman discusses Geithner’s remaks:
At Seeking Alpha, John M. Mason comments on Robert Mundell’s recent WSJ interview.
On Catholic Culture, Dr. Jeff Mirus summarizes Goldman and Reuven Brenner’s recent article on Keynesian economics.
Keynes’ idea is simple. In fact, it is simple by construction, for it focuses on the very short term within a closed economy. If consumers won’t spend, the government will spend for them; if businesses won’t invest, the government will invest for them; and if investors won’t take risks, the central bank will reduce the yield on low-risk investments to almost nothing. The risk-taking of entrepreneurs, the cleverness of inventors, the skills and motivation of the workforce, the competitiveness of industries—all the granular reality of a dynamic society, chugging along through trial and error—vanish into Keynesian aggregates like gross domestic product, price indices, productivity, and so forth. Behind all the technical language stands the assumption that bureaucracies, with no business experience whatsoever, can somehow make wise decisions about allocating capital—and do so quickly. These gross simplifications take on the aura of academic theurgy when packaged into seemingly complex mathematical models that occult their ridiculous assumptions.The Telegraph (UK), Terry Smith argues against raising British tax rates.
At Forbes, Rich Karlgaard suggests the key to restoring economic growth is more small companies reaching the billion-dollar mark.
In Investor’s Business Daily, David Beckworth and William Ruger critique Fed policy from a monetarist perspective.
On Kudlow, Don Luskin says the Fed not the Treasury determines the dollar’s value:
Cato’s Dan Mitchell wonders why distrust of government seems to be a partisan issue.
