You’ve heard what the early (and slim) analyst reaction has been, now for what the blogosphere has had to say about the fiscal deal achieved.
A good rundown comes courtesy of Pragmatic Capitalism’s Cullen Roche:
- A deal was actually finalized. That’s good news. It looked like we might actually go into January without a deal and that the odds of no deal at all were rising.
- No one really won here. Congress is totally dysfunctional.
- There’s still a lot unanswered.
Brad DeLong’s note on the first decades of central banking practice and theory didn’t get as much attention as his paper on fiscal policy at the zero bound (co-authored with Larry Summers) — but we really think it’s worth a read for anyone with an interest in the topic.
We won’t summarise the whole thing here, but one point in particular is worth emphasising. Read more
Gavin Davies asks a good question on his FT blog: Does the ECB really have a silver bullet?
An increasing number of market participants want to believe it does, and some have even convinced themselves that the ECB will pull the trigger on unsterilised bond buying, but Davies remains to be convinced. Read more