Weekend Music & Links
Your links for this weekend:
- Japan looks to increase its weak levels of foreign direct investment as a way to end decades of economic stagnation and to recover from recent disasters (The New York Times), and the patterns of investment by emerging and developing nations (VoxEU).
- More evidence that the technology we use changes our patterns of thought (The Atlantic), which was a core contention of a book I highly recommend, Nicholas Carr's The Shallows.
- Noah Smith points us to two very interesting bits of research on asset price bubbles driven by leverage and asymmetric information, and on heterogenous agent models, which I don't know very much about yet.
- More on trade, as the Ricardian model comes under increasing fire in the blogosphere: Dani Rodrik writes that free trade has redistributive implications that economists often choose to overlook (Project Syndicate), and Ryan Avent on The Economist's "Free Exchange" blogs writes that capital account imbalances in the context of growing capital flows may be a source of legitimate concern (The Economist).
- The Fed is looking into sterilized bond purchases, which would be a way to continue the depression of long-term interest rates achieved in Operation Twist, even though they've almost exhausted their holdings of T-bills. It would also be the first large-scale test of reverse repurchase agreements (The Wall Street Journal).