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Thursday items: Woodhill says paying interest on reserves is the root of the problem; Bloomberg forecasts the euro falling to $1.20; Cain’s tax advisor cites Laffer and Wanniski.

From Forbes, Louis Woodhill makes a compelling case that the Fed paying interest on reserves has killed M1 velocity and the monetary multiplier, neutralizing the effect of quantitative easing.

Bloomberg reports a technical analysis predicting the euro to fall to $1.20 in the next three months, per Robert Mundell’s prediction.

Human Events notes Art Laffer endorsing Herman Cain’s 9-9-9 tax plan.

On Fox News, Laffer discusses the plan: 

From reader S. Rao:

1. The New York Times profiles Cain’s sole economic advisor and notes that he looked to Wanniski in devising 9-9-9.

“Mr. Lowrie said he had been inspired by two well-known proponents of supply-side thinking: Arthur Laffer, often considered the father of the concept that lower tax rates help pay for themselves by generating additional economic growth, and Jude Wanniski, who promoted the idea among politicians.”

2. During Tuesday’s debate, Cain again repeated the Wanniski wedge-model for the capital gains tax:

“But also, get rid of the capital gains tax. That’s a big wall between people with ideas and people with money.”

Politico reports on Gary Robbins’ analysis of Cain’s plan.

CNBC describes Gov. Rick Perry’s energy production plan.

On NRO, Kevin Williamson slams Warren Buffett’s tax analysis.

At Politico, Josh Boak reports on last week’s Heritage conference on a stable dollar.

Caffeinated Thoughts suggests Newt Gingrich favors gold-linked money.

The Economist’s Buttonwood wonders at low bond yields despite depreciating currencies (h/t: TGSN).

From the Council on Foreign Relations, Ben Steill explains the Marshall Plan’s role in fostering European economic liberalization. 

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