Monthly Archives: June 2013

Not All Is Sunny in Consumer Spending Report

(Originally published here.) On the heels of yesterday’s revised estimate of first-quarter U.S. gross domestic product, we got up-to-date information today about the spending and saving patterns of American consumers. The broadly positive news likely helped this week’s stock rally to continue, but those … Continue reading

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What That GDP Revise Really Means

(Originally published here.) U.S. stocks were up this morning despite some surprising and sizable downward revisions in the U.S. Bureau of Economic Analysis’s final first-quarter estimate of gross domestic product. Most bond yields, which have risen relentlessly since May, are down by … Continue reading

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Basel’s Gnomes Have a Point

(Originally published here.) The Bank for International Settlements was the only public institution that trumpeted the dangers building within the financial system during the 2000s. While academics and central bankers celebrated the false triumph of the “Great Moderation,” the BIS, … Continue reading

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Interest Rates Gone Wild?

(Originally published here.) Yields began rising in early April, with the earliest indicator coming from the interest rate on 5-year Treasury Inflation-Protected Securities. 5-year yield on Treasury Inflation-Protected Securities. Source: Bloomberg Many observers didn’t notice what was happening at first. … Continue reading

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Immigration’s Economic Boost Depends on Learning English

(Originally published here.) The Wall Street Journal published an editorial the other day arguing that new immigrants to the U.S. are “assimilating” just as well as previous cohorts of newcomers, writing that “today’s immigrants are acculturating and moving up the economic ladder … Continue reading

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Ignore the ‘Taper,’ Focus on Fed Rate Hikes

(Originally published here.) Ben Bernanke said today that the Federal Reserve has two policy tools at its disposal: the level of the short-term interest rate and the quantity of assets added to its balance sheet. Short rates have been stuck … Continue reading

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A Truce Between Monetarists and Fiscalists?

(Originally published here.) Ever since the economic crisis began in 2007, there have been vigorous debates on the best ways for governments and policy makers to respond. (Obviously, some people argued that the best response was to do nothing.) The … Continue reading

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