Robin Harding: Central bankers give voice to a revolution: "The past five years have led central banks to a revolutionary situation. When the crisis hit, they played their best moves, but to modest effect. Quantitative easing – the ugly term for buying long-term assets in order to drive down long-term interest rates – looks radical thanks to the many-zeroed numbers involved. In reality it is just another way to cut interest rates. Monetary policy, and every other kind of policy, failed to engineer a strong recovery in advanced economies. Dissatisfaction with that outcome has led central bankers, spurred on by a healthy dose of external criticism, towards ideas that have been percolating in academia since Japan’s bubble burst in 1990…. Paul Krugman, Lars Svensson and Michael Woodford… tell people that you will keep interest rates low in the future. If they believe you then it makes sense for them to borrow now. If rates are to stay low even after the economy recovers then why would they not? Central banks are now pursuing that basic insight."
Gordon's Notes: Tax bullets to pay for better mental health care
Noah Smith: Noahpinion: The Omnipotent Fed idea