Interesting Inflation News Links (March 15, 2009)

* An uphill struggle at the G20 summit (Telegraph)

The Bank of England gives warning in its quarterly bulletin today that the British economy may be at risk of slipping into the kind of deflationary spiral last witnessed during the Great Depression. It argues that while in some instances deflation can be benign, when falling prices combine with the high levels of personal indebtedness that characterise the British economy, it can prove lethal….

* Fed weighs options to revive economy (Jeannine Aversa-)

WASHINGTON — As they prepare to open a two-day meeting Tuesday, Federal Reserve policymakers are weighing whether to launch new programs or expand existing ones to spur lending, get Americans spending again and lift the country out of recession.

* 30-year fixed mortgage rate sinks to 5.03% (San Francisco Chronicle)

The average rate on a 30-year fixed mortgage slipped to 5.03 percent from 5.15 percent the previous week. A year ago, the 30-year fixed-rate mortgage averaged 6.13 percent.

* Secondary Sources: Global Regulation, Japan Experience, ECB Policy (Phil Izzo, Wall Street Journal)

Rodrik Roundtable: The Economists Free Exchange blog is conducting a fascinating roundtable of economists discussing an article by Dani Rodrik that says global regulation isnt the answer. The logic of global financial regulation is flawed. The world economy will be far more stable and prosperous with a thin veneer of international co-operation superimposed on strong national regulations than…

* Stock Market: Sale of the Century (Wall Street Journal)

The market selloff has gotten so bad, says Obama economic adviser Larry Summers , that the Dow Jones Industrial Average today adjusted for inflation by the Consumer Price Index is at the same level it was in 1966 when Lyndon Johnson was president.

* Study: independent port truckers struggling

KEARNY A recent Rutgers University study has found that the 5,100 independent truckers who work regularly at the Port of New York and New Jersey are struggling to make ends meet.

* Global Central Banks Step Up (David Gaffen, Wall Street Journal)

How does a central bank know its actions are going to be successful or rendered ineffective by the markets?

* Stocks of interest in Rochester surge, but analysts still wary (Democrat & Chronicle)

Eastman Kodak Co. closed Monday at $2.17 a share. By Friday, after four straight days of rising prices, it closed at $3.58. Xerox Corp. ended Monday at $4.17 a share and went up three of the next four days, closing the week at $5.19. Paychex Inc. similarly wobbled upward from $20.43 on Monday to $22.75.

* Companies pass on health savings to staff (Josephine Cumbo, The Financial Times)

The premium gap between company medical insurance and individual cover is widening, with thousands of employees now enjoying chunky rate reductions not offered elsewhere.

* Obama’s energy secretary rethinks FutureGen costs

WASHINGTON The Bush administrations decision to halt production of an experimental power plant that would capture and store carbon dioxide emissions underground may have set back clean coal technology in the United States by as much as a decade, according to a congressional report released at a hearing last week.


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