Business-Cycle Conditions

Thursday, May 19th, 2011
"The U.S. Consumer Price Index for April provided insight into one reason why the housing market is so quiet. While home prices have been showing steady erosion so far this year, as recorded by the S&P Case-Shiller index, the price level for a basket of consumer goods has been rising.
Thursday, May 19th, 2011
"William Niskanen (2002) estimated a Phillips curve for the United States using annual 1960–2000 data. By adding one-year lagged terms in unemployment and infl ation, he was able to show that this familiar equation is misspecified.
Wednesday, May 18th, 2011
"The federal government recently placed Fannie Mae and Freddie Mac, the government chartered, privately owned mortgage finance companies, in conservatorship.
Thursday, May 12th, 2011
"Bernanke continues to dismiss inflation as a big U.S. economic concern, and the Fed decided last week to keep interest rates between 0.00% and 0.25% "for an extended period." But U.S.
Thursday, May 12th, 2011
"Vincent Reinhart of the American Enterprise Institute talks with EconTalk host Russ Roberts about the government interventions and non-interventions into financial markets in 2008. Conventional wisdom holds that the failure to intervene in the collapse of Lehman Brothers precipitated the crisis.
Thursday, May 5th, 2011
"F.A. Hayek said that his biggest regret in a lifetime of writing was that he never wrote a book-length refutation of Keynesian economics. He seriously doubted that Keynesian style planning would ever captivate governments, so he focused on different things.
Monday, May 2nd, 2011

Business Cycle Conditions

May, 2011
The continuing woes of states that rode high on the real-estate boom are exerting a drag on the broader economy. But federal policymakers don’t have the right tools to fix this.
by Polina Vlasenko, PhD, Research Fellow

Friday, April 1st, 2011
“Inflation can adversely affect corporate profits, household discretionary spending, and stock prices. Rising costs for raw materials have a dampening effect on profits. Increasing costs of food and energy begin to account for larger and larger portions of a household’s disposable income.
Thursday, March 31st, 2011
The discussion in monetary institutions is becoming increasingly relevant in economics. How to deal and avoid financial crisis is an important issue. The recent financial crisis showed that economics might not be as suited to foresee and deal with these problems as the theory seems to suggest.
Tuesday, March 29th, 2011
"One would hope that the supposed “great minds” at the Fed and in academic economics would better understand inflation and its destructiveness, but that is not to be. First and most important, the lack of inflation is not the enemy of the economy.
Wednesday, March 23rd, 2011
"In a series of newspaper columns last year, Don Boudreaux compared the economy to a giant jigsaw puzzle with billions of pieces that can fit together in numerous combinations only a small number of which produce a meaningful pattern or picture.
Wednesday, March 16th, 2011
"By 2020, public debt in the United States is set to reach 90 percent of GDP, a line that many economists demarcate as when accumulated debt pushes an economy to the precipice of fiscal demise.
Tuesday, March 8th, 2011
"If people individually reduce their spending, the fiscal stimulists claim that government can fill the void by spending more. This is a portrait of government spending as providing a "shot of adrenaline for a slumping economy," to cite a common image.
Monday, March 7th, 2011
"Lately, that seems to be the message coming from current and past Fed officials regarding the housing and credit boom in the early-to-mid 2000s. First Ben Bernanke, then Vincent Reinhart, and now Janet Yellen have come out saying it was excess savings by foreigners and failings in the U.S.
Wednesday, March 2nd, 2011
"In the midst of the current financial crisis the economics profession has seen a monumental resurrection of Keynesian ideas. The debate, which Keynes started back in the 1930s, is being picked up again, not where it left off, but in exactly the same place it started.
Wednesday, February 23rd, 2011
"Rather helpfully, on the Bank’s website there is an explanation of how Quantitative Easing was supposed to improve the economy.
Wednesday, February 23rd, 2011
"About seventy percent of American households own their own homes, and for many their homes represent the majority of their net worth.
Wednesday, February 16th, 2011
"Budget plans seldom have happy as a starting point. Spending proposed by the White House Monday is certainly no exception.