Moneyandbanking.com Website Review

Ben Bernanke Conversable Econ Brad de Long Econbrowser Economic Snapshot Economics One Economist's View Fed Watch Free Exchange Geo-Graphics Grumpy Economist HouseofDebt.org iMFdirect Paul Krugman Liberty Street Econ macroblog Macro and Markets Mankiw's Blog Marginal Revolution New Monetarist Econ Noahpinion planet money Paul Romer Roubini GE Stern Econ blog Supply-side Liberal. THE AUTHORS WISH YOU HAPPY HOLIDAYS! OUR NEXT POST WILL BE IN MID-JANUARY. Stargazers hate clouds. Even modest levels of humidity and wind make it hard to “see” the wonders of the night sky. Very few places on Central bankers face a similar, albeit earthly, challenge. Even the simplest economic models require estimation of unobservable factors; something that generates considerable uncertainty. As Vice Chairman Clarida recently explained the U.S. economy, but also to pin down the factors that drive a wide range of models that guide policymakers’ decisions. In this post, we highlight how the Federal Open Market Committee’s (FOMC’s) views of two of those “starry” guides—the natural need to shift course when the clouds part, revealing that they incorrectly estimated these economic stars. The uncertainty resulting from unavoidable imprecision not only affects policy setting, but also complicates policymakers’ communication, which is one of the keys to Addressing the calamity posed by the failure of large, global financial intermediaries has been high on the post-crisis regulatory reform agenda. When Lehman Brothers―a $600 billion entity―failed, it took heroic efforts by the world’s central bankers to prevent a financial meltdown. The lesson is that a robust resolution regime is a critical element of a resilient financial system. Experts have been hard at work implementing a new mechanism so that the largest banks can continue operation, or be wound down in an orderly fashion, without resorting to taxpayer solvency support and without putting other parts of the financial system in danger. To