A lot has been made of the Federal Reserve’s close links with Ivy League academics, some of whom also consult for private banks. See, for instance, this paper by Gerald Epstein and Jessica Carrick-Hagenbarth, which looks at the whether there is a relationship between economists’ positions on financial regulation and who they’re working for.
No-one, however, has gone as far as to claim that the universities may be considered part of the Fed itself. Read more
Sir Mervyn King has twice of late attacked eurozone officials’ line on the region’s sovereign debt crisis, first at the inaugural Financial Policy Committee press briefing, then to parliament last Tuesday. On both occasions he trashed the view that the crisis was a problem of liquidity, not solvency, saying that unless officials accepted that sovereigns were broke, “we will never find an answer to it”.
He is not the only European central banker whose recent barbs have challenged the eurozone orthodoxy. Read more