Good Reads

•  Scott Sumner latest paper titled a "Market-Driven Nominal GDP Target" came out last month at the Mercatus Center. It is the best piece I seen so far on nominal GDP futures targeting. It addresses all the critiques of his proposal and highlights different version of it. My understanding of nominal GDP targeting was sharpened after reading it.

• Many, if not most, economists and pundits believe that higher capital requirements for banks would go a long way in establishing a more secure financial system. Joshua Hendrickson, however, raises some questions about this view and argues here, here, and here that removing the limited liability status of banks (i.e. creating contingent liabilities for shareholders) would better.
• Update: Ryan Avent has a great piece on the unfinished revolution in central banking.