This is an excellent, MUST READ article by macro-economist, Gavyn Davies in his FT blog.
This morning, newspapers around the World are full of stories of financial markets rising yesterday on the back of the unexpected news from the Fed.
Personally, I still think there there is room for significant fiscal expansion in Washington, London and Berlin. By selectively cutting taxes, there is an opportunity to stimulate growth and investment, reducing unemployment.
Let me turn this to an open question:
- Never underestimate the Fed’s dovishness | Gavyn Davies – FT (dralfoldman.com)
- India’s new Raj(an) | Gavyn Davies – FT (dralfoldman.com)
- Summer(s) time at the Fed | Gavyn Davies – FT (dralfoldman.com)
- The case for cautious optimism on the British economy – Gavyn Davies – FT.com (dralfoldman.com)
- Global slowdown raises bigger issues for policy | Gavyn Davies – FT (dralfoldman.com)
- Dr Alf’s Two Cents: The real underpinning for equities | Gavyn Davies (dralfoldman.com)
- What will happen to markets when QE ends? | FT – Gavyn Davies (dralfoldman.com)
- UK productivity the key puzzle for Carney | Gavyn Davies – FT (dralfoldman.com)
- Gavyn Davies: Fed Bazooka Aimed at the Eurozone (delong.typepad.com)