The prisoner’s dilemma illustrated via YouTube:
HT: John Taylor
UPDATE: Scott Sumner writes, “I’ve never been more proud to be human.” [...] 
Why didn’t anyone tell me that John Taylor is blogging?
In any event, Taylor does some of the best work in the profession — thoughtful, careful, and persuasive. Definitely check out the blog. [...] 
Again. [...] 
James Hamilton has written an excellent post on Federal Reserve repos. I would also recommend his contribution to The Road Ahead for the Fed if you are interested in this sort of analysis of the Fed’s balance sheet. [...] 
[...] 
David Beckworth revives his excellent summary of the Depression debate — in graphical form. [...] 
This month’s Cato Unbound looks especially promising. It is entitled, “Monetary Lessons from the Not-So-Great Depression” and features a lead essay from Scott Sumner and will have contributions from James Hamilton, George Selgin, and Jeffrey Hummel. You can read Sumner’s lead essay here. [...] 
1. The Purchasing Power of Money by Irving Fisher
2. The Road Ahead for the Fed [...] 
In keeping with tradition, we celebrate the division of labor on Labor Day. [...] 
Courtesy of Division of Labour:
Mechanics don’t seem to like the program….
…nor do charities. [...] 
Today, July 31, was Milton Friedman’s birthday. Here is a clip of Milton Friedman, at his best, 30 years ago: [...] 
Isn’t it time for the Fed to consider eliminating interest payments on excess reserves? [...] 
“In any event, it is not like the only alternatives available to us are a government-run health insurance plan or unregulated laissez faire.”
— Greg Mankiw [...] 
Interest and Prices by Michael Woodford — again
Monetary Policy, Inflation, and the Business Cycle by Jordi Gali
Some Fiscal Calculus by Harald Uhlig
Street Fighters: The Last 72 Hours of Bear Stearns, the Toughest Firm on Wall Street by Kate Kelly [...] 
James Hamilton offers his thoughts on the recent passing of Clive Granger. [...] 
Our friend James Pethokoukis has moved. He is now blogging for Reuters. Update your bookmarks. [...] 
When the government proposes a program that will increase the costs of companies and the CEOs start talking favorably about the program, it is generally not a good sign that the policy is going to be effective. [...] 
It turns out the stress tests were not all that stressful. [...] 
David Beckworth and I discuss the SDR in the comments of his recent post. [...] 
Scott Sumner has an excellent post on the impact of Friedman and Schwartz’s Monetary History of the United States on our thinking about monetary history and policy. You can read my thoughts in the comments of that post. [...] 
The success of the stimulus package hinges on the multiplier effect of the increase in government spending. In a talk at the University of Chicago, CEA chair Christina Romer defended her estimate of the multiplier as well as more general criticism of the package. [...] 
Pictures are worth a thousand words. [...] 
Russ Roberts edits the AP story about the jobs report “in case you’d like to read it without the opinions and overwrought verbs of the reporter.” [...]
If money can’t buy happiness, can it buy confidence? 
A disturbing graph via Casey Mulligan. 