This post provides links to a number of interesting articles I have read over the past few days that you may also enjoy.

• Joseph Gagnon (Peterson Institute for International Economics via Absolute Return Partners): The world needs further monetary ease, not an early exit, December 2009. We need additional stimulus now. In particular, central banks in the main developed economies should push long-term interest rates 75 basis points below the levels they would otherwise take by purchasing a combined $6 trillion in long-term public and private debt securities. Relative to current forecasts, this policy action is expected to boost GDP 3 percent or more over the next eight quarters and to reduce unemployment rates by between 1 and 3 percentage points.

• Bill Fleckenstein (MSM Money): Why the Fed loves inflation, December 4, 2009. This man [Bernanke] would cheer an inflation rate

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by Edward Hugh: Barcelona br /br /br /He's at it again. Last year he was busily trying to worry us all that inflation was set to get completely out of hand among the 16 countries who make up the eurozone. Now the President of the European Central Bank, Jean-Claude Trichet, is hard at it on another tack and a href="http://www.reuters.com/article/bondsNews/idUSLL48440320090121?sp=true"is busying himself trying to convince us/a that there is no credible deflation threat facing these countries. Apart from getting it wrong on both occasions, the common point here would be a certain inbuilt "inflation bias", a bias which was earlier called "the original sin of the Bundesbank" by nobel prize winning Italian economist Franco Modigliani.br /br /blockquote"There is presently no threat of deflation," Trichet told a committee of the European Parliament on Wednesday 14 February. "We are currently witnessing is a process of disinflation, driven in particular by a sharp ...