Tyler Cowen and Brad DeLong explain why monetary policy via “helicopter drops” might be helpful. Paul Krugman expresses skepticism, on economic and legal grounds. Mark Thoma doesn’t seem to mind, but he’d prefer it be done via government spending rather than tax cuts.
Calculated Risk has a series of guest posts dealing with the issue of sovereign defaults. So far, we’ve got parts 1, 2, 2B, 3, & 4. Apparently the really interesting (to me) parts of the series – re. worst-case scenarios & knock-on effects – is yet to come.
Michael Pettis explains why China’s “nuclear option” of dumping Treasuries is overrated, and why we really ought to be worried about a diametrically-opposite scenario of massive Chinese capital exports. And speaking of China, here’s an FT article about a huge Chinese ghost town, plus a post with pretty pictures of the same.
In utterly-unrelated news, Marko Milanovic gives a nice overview of the issues at stake in the ICJ’s Kosovo independence case.
And apropos absolutely nothing, this guy thinks WWII would suck as a TV show.