Interesting Inflation News Links (February 7, 2009)

* Flawed model ‘blinded’ King to credit crisis (Heather Stewart, Guardian Unlimited)

Former members of the monetary policy committee will this week call on Mervyn King to tear up the Bank of England ‘s complex mathematical model of the economy, as the Bank is accused of having exacerbated the recession by failing to cut interest rates fast enough when the credit crunch hit.

* Fuel prices rise in China (Ed Crooks, The Financial Times)

After holding out for a year and a half, the Chinese government has at last bowed to the pressure of the crude oil market and raised the regulated prices of petrol, diesel and jet fuel by almost 10 per cent . Beijing is worried about inflation and the discontent caused by the rising cost of living. But the combination of soaring crude prices with regulated product prices meant the refiners were…

* We wont abandon savers, says Mervyn King (Times Online)

MERVYN KING, the Bank of England governor, will insist this week that the monetary policy committees aggressive cuts in interest rates do not mean savers in Britain have been abandoned.

* Bank to issue grimmest warning yet on economy (Heather Stewart, Guardian Unlimited)

Mervyn King will this week present the Bank of England ‘s most pessimistic assessment yet of the outlook for Britain’s economy, after a slew of official figures confirming that activity has “fallen off a cliff” since the autumn.

* Iran: Sanctions Haven’t Deterred Nuclear Program

TEHRAN, Iran Iran has achieved breakthroughs in nuclear and space technology despite international sanctions against it, the country’s top leader said Saturday.

* Iran: Nuclear, space progress despite sanctions (Ali Akbar Dareini)

TEHRAN, Iran — Iran has achieved breakthroughs in nuclear and space technology despite international sanctions against it, the country’s top leader said Saturday.

* YES WE CAN!! have a global depression if we really continue to work at it (Willem Buiter, The Financial Times)

I used to be optimistic about the capacity of our political leaders and central bankers to avoid the policy mistakes that could turn the current global recession into a deep and lasting global depression. Now Im not so sure.

* Reaganomics worked (Kansas City Star)

Reporter Dave Helling implies that Republicans following former President Ronald Reagans example of cutting tax rates would increase deficits, and he said it isnt clear whether Reagans tax cuts reduced unemployment (2/1, A-1, Do we need a jolt? ).

* Unemployment and inflation dim the glow of 30-year-old new dawn (Ian Black, Guardian Unlimited)

The teenage schoolgirls giggled quietly under their black chadors as they were shepherded past displays telling grim tales of Iran ‘s recent past: images of political prisoners tortured and executed by the shah’s Savak secret police sit next to the glorious dead of the “imposed war” with Iraq .

* Letters 02/07/09 (Kansas City Star)

Obama’s mea culpaAt last some good news: President Obama says, “I screwed up” (2/4, A-1). And it took him only two weeks!Even after eight years filled with many opportunities, Mr. Bush couldn’t manage such a forthright acknowledgment. That President Obama could is a sign of hope.This is c…

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