Links 5/7/08

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Dirty Volcanic Eruption In Chile Can Change Climate Culture of Life News. Check out Krakatoa.

Priorities 26econ

Credit crisis far from over: expert The Australian. Satyajit Das aruge that inflation isn’t so bad, given the alternatives.

New Zealand Announces New Liquidity Measures Michael Shedlock

The Short View: Crunchy credit John Authers, Financial Times.

Fed’s Hoenig Says Inflation `Serious,’ May Prompt Rate Increase Bloomberg

Current Account Balances, Again Menzie Chinn, Econbrowser. A very useful post summarizing research on current account sustainability. Predictably, the two papers that looked specifically at the question of how long the US could maintain its large deficit reached differing conclusions.

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