Darn, those Fed officials are agreeable folks. Doesn't matter what the decision is, everyone is in (generally) unanimous agreement. Inflation? Rate cuts? Disinflation? Rate increases? We agree! We agree again!

Or do they. A new paper makes the case that having Fed deliberations become public has decreased the likelihood of disagreements. Is the Fed papering over things, to our collective disadvantage? You be be the judge:

Publicity of Debate and the Incentive to Dissent: Evidence from the US Federal Reserve*
The Economic Journal, Vol. 118, Issue 528, pp. 695-717, April 2008

Abstract:
Transparency in committee decision making may have clear benefits by making members more accountable to outside observers. We consider one potential cost: the possibility that publishing records of deliberations will make members more reluctant to offer dissenting opinions. We construct a model that compares incentives for members with career concerns to voice dissent when deliberations occur in public or in private. We test the model using an original dataset based on deliberations of the Federal Reserve's Federal Open Market Committee, asking whether the FOMC's 1993 decision to begin releasing transcripts of its meetings has altered incentives for dissent. We find evidence that this is indeed the case.

Whoops, Harvard Endowment has hired a new CIO. As I have said in the past, that is a thankless position, a stepping stone to other things, which is precisely what happened to the position's last holder, Mohamed El-Erian, who quickly made the leap from Harvard to Pimco.

So, how long will new Harvard CIO Jane Mendillo last?  I say 18 months before she's gone, likely to Fidelity.

In meetings most of today, so postings will likely be light. Behave yourselves.

Just noticed that it's snowing up in Vancouver. This is awfully late. Check the live picture:

Emptying my burgeoning browser tabs:

• Rumors of hedge funds' demise are overrated (Euromoney)
• Vacation Home Sales and Prices Tumble as Buyers Wait (Bloomberg.com)
• The Effect of the Uptick Rule on Spreads, Depths, and Short Sale Prices (SSRN)
• Fed Leaders Ponder an Expanded Mission (Washington Post)
• Introduction of Pecora Report that absolved short-sellers of 1930s bear raids (SEC Historical)
• Brazilian real falls on commodities drop (Bloomberg)

Old joke, but still amusing -- and timely:

What’s the difference between a stockbroker and a pigeon? A pigeon can still leave a deposit on a Porsche.

[via Prieur]

Quote of the day comes from a Euromoney piece on how hedge funds aren't as bad as you think they are:

The worst month for hedge funds has been Long-Term Capital Management (-7%), the worst day for equity has been black Monday (-20%).

Can you say "apples and oranges"? I knew you could.

[via Euromoney]