My latest post at Forbes endorses Raghuram Rajan's call for there to be permanent co-operation between the central banks of the G20. Business is global: financial markets operate across borders. Countries no longer have genuinely independent monetary policy. Monetary policy needs to be co-ordinated internationally, with the Fed as "first among equals". Whether intentionally or not, the Fed has become the de facto central bank of the world. It is time it behaved like it.
Read the whole post here.
Why the Fed cannot taper - Coppola
Don't blame the Fed for the turmoil in emerging markets - Aziz, The Week
Fed to emerging markets: "Our currency, your problem" - for now - Verma, Euromoney
Emerging markets' victimhood narrative - Rodrik & Subramanian, Bloomberg
Dilemma not Trilemma: the global financial cycle and monetary policy independence - Rey, VoxEU
Trilemma looks ok to me (Mundell-Fleming model still works) - Guy Debelle, Reserve Bank of Australia
Unravelling the global effects of mad money - Mardle Capital