Check
out all the great contributions that were published during the past week on
RGE’s Nouriel
Roubini’s Global EconoMonitor, RGE Analyst’s
EconoMonitor, Finance &
Markets Monitor, Peterson Institute for
International Economics Monitor, Global Macro
EconoMonitor, U.S. EconoMonitor,
Emerging
Markets Monitor, Asia EconoMonitor,
Latin
America EconoMonitor and Europe EconoMonitor.

On
Nouriel
Roubini’s Global EconoMonitor, the RGE Analysts
focus on expected growth and inflation dynamics to determine the course of
monetary policy actions in advanced and emerging market economies.  Please read Global
Monetary Policy Outlook.

On
the RGE Analyst’s EconoMonitor,
Katharina Jungen takes the twentieth anniversary of the fall of the Berlin Wall
as an opportunity to review the progress of economic convergence between the
former German Democratic Republic (GDR) and West Germany.  Katharina notes that due to its economy’s
lack of dynamism, not only has the East been lagging behind its western
counterpart, but it is also set to be overtaken by other post-communist
economies.  In order to revive the
catching-up process, which has practically been on hold for the past decade,
Katharina argues that a redirection of financial aid from social security
transfers towards supporting innovation in small firms is key.  Please read Germany,
20 Years On: Goals Reached?

In
Another
Bleak U.S. Labor Market Report, Arpitha Bykere and
Christian Menegatti argue that U.S. job losses remain high despite easing in
the recent months. Amid continued job losses, record low work hours and subdued
labor compensation, consumer spending will remain weak, especially as the
impact of policy stimulus fades. Sluggish hiring will keep the unemployment rate
high for some time and contribute to the slack in the economy.

In
The
Zombies are Coming… Again, Christian Menegatti and Elisa
Parisi-Capone revisit the number and names of zombie banks in the U.S. as of Q2
2009.

In
Revisiting
2009 Predictions for Equity Markets Monika Brown reviews
and analyzes analyst predictions made in January 2009. A divergence in opinion
between the large institutional managers and independent managers is noted.

On
the Finance & Markets Monitor,
Joseph Mason asserts that the discussion draft for financial reform released by
the Senate Banking Committee doesn’t contain much that is worthwhile, and Mason
argues that reform requires serious inquiry and understanding into the causes
of the crisis; otherwise it is just a political exercise in the run-up to
mid-term elections. Read In Crisis
Inevitably Breeds Leviathan.

In
Senate
Bill Would Break-Up TBTF Banks, Barry Ritholtz takes
a look at a bill that is gaining ground in Congress that would “break-up” big
banks, addressing the too big or too interconnected to fail problem.

On
the Peterson Institute for
International Economics Monitor, Anders Aslund
discusses the complaints that the CIS countries are having with Russia
including Russia’s lack of respect for its neighbors’ territorial integrity,
gas policy, trade conflicts, and financial issues.  Russia’s reputation as an unreliable and
unpredictable partner is contributing to its increasing isolation on the world
stage.  See The
Leader of the CIS Is Lonely and Weak.

In
India:
New Letter and Spirit, Arvind Subramanian looks at the
radical views of Jairam Ramesh, minister of state for the environment, as India
struggles with its identity as an international player with the emergence of
the G-20.

On
the Global Macro EconoMonitor,
James Kwak points out that productivity growth, which is often quoted in the
media and is almost always referring to labor productivity, can be all over the
map in the short term and especially during recessions; productivity often
falls during a recession as output falls faster than companies lay off workers
and spikes afterward because output is growing right while companies are laying
off workers.  However, in the long term,
productivity growth depends on thing like improvements in technology and business
processes.  Read Productivity
and Layoffs.

In
If
the Fed is Looking to Inflate Away Problems, What Should Asia Do?
Edward Harrison presents a piece by Andy Xie who suggests that China and Japan
should form a new free trade agreement.

In
Parallels
Between US and Japanese Economies Edward Harrison
presents a clip of Marshall Auerback elaborating on the similarities between
the U.S. and Japanese economies pointing to the misallocation of fiscal
resources, crony capitalism, zombie banks, and low interest rates.

On
the U.S.
EconoMonitor, Fabius Maximus shows how ridiculous it
is that most Americans vote their pocketbooks in elections to Congress and the
Presidency.  See A
Note about the US Economy and the Recent Elections (Yes, We’re Nuts)

In
The
Fed is Already Transparent, Mark Thoma presents a piece by
Anil Kashyap and Frederic Mishkin who are worried that the Ron Paul proposal to
audit the Fed will “cripple policy making.” 
Thoma adds that the people are frustrated that they don’t feel the Fed
is acting on their behalf, and Thoma offers some solutions to make the people
feel that they have more influence.

In
Inflation
Expectations Continue to Inch Higher, James Picerno points
out that it appears that the financial system has stabilized and the battle
against deflation seems to have been won, but that doesn’t make it any easier
to predict precisely how the Fed will act going forward.

Also
on the U.S. EconoMonitor:

Unemployment
Rate Illusion by Edward Harrison

Understatement
of the Year: “Recovery Hampered by Unemployment”
by Barry Ritholtz

On
the Emerging Markets Monitor,
Antonio Carlos Lemgruber recognizes the seriousness of the dollar party and
recommends keeping an eye, as usual, on what is happening in the U.S.  Lemgruber sees these “negative” signs
occurring as soon as the very beginning of 2010.  Read The
Dollar Party.

On
the Asia EconoMonitor,
Anoop Singh wrestles with the mystery of Asian firms that save but don’t invest
and households that hold wealth and don’t consume, which is contributing to
global imbalances and constraining its long-term growth potential.  Singh offers corporate governance and
financial sector development as vital clues, which present interesting policy
implications.  See Asia’s
Corporate Saving Mystery.

In
The
IMF on Asia’s Recovery and its Sustainability, Claus Vistesen
argues that Asian countries “hold little promise in terms of providing a
decisive engine for rebalancing through sustainable growth in domestic demand
which exceed investment rate, and therefore is cautious on the overall
sustainability of the recovery in Asia.

On
the Europe EconoMonitor,
David Smith reports that in the UK, the Bank’s new forecasts are more upbeat
and predict higher inflation, while unemployment figures continued the very
encouraging pattern.  See Bank
Moderately Upbeat – Good Unemployment News by David Smith

In The
Dollar As A Funding Currency, Edward Hugh discusses
carry trades and exit strategies.