The financial crisis and ensuing Great Recession left the U.S. economy in an injured state. In 2013, output was 13 percent below its trend path from 1990 through 2007. Part of this shortfall—2.2 percentage points out of the 13—was the result of lingering slackness in the labor market in the form of abnormal unemployment and substandard weekly hours of work. The single biggest contributor was a shortfall in business capital, which accounted for 3.9 percentage points.
There has been a lot to think about during these years of Obama’s foreign policy. But the problem is not just the existential issues, from reset to Benghazi, but also the less heralded developments, such as young non-high-school graduate Edward Snowden’s trotting off with the most sensitive secrets of the NSA, the “stuff happens” outing of a CIA station chief in Afghanistan, and the failure to destroy the downed drone that ended up in Iran.
From coast to coast, Americans will go to the polls on Tuesday. There’s an intriguing U.S. Senate race in Mississippi that may have turned on an alleged conspiracy to break into a nursing home and photograph the incumbent’s ailing wife. In Iowa, five Republicans competing in that’s Senate primary could so dilute the vote that no candidate will garner at least 35% of the sum – leaving the choice to a June 14 party convention to settle matters.
So many members of the financial press were having a good time tweeting at the Fed Centennial conference last week at Stanford that, according the “TweetReach Report,” about 1 million Twitter accounts were reached and 10 million tweets were delivered about the hashtag #hooverfedconference. Here is a photo of the post-conference press conference.
At one time, people in India had to get on a waiting list to buy Hindustan Motors' Ambassador automobile, even though it was an obvious copy of Britain's Morris Oxford of some decades earlier. The reason was simple: the Indian government would not allow cars to be imported to compete with it.
by Mark Harrisonvia VoxEu.org (Centre for Economic Policy Research)
Tuesday, June 3, 2014
As its centennial approaches, the events of the Great War have worldwide resonance. Most obviously, is China the Germany of today? Will China’s rise, unlike Germany’s, remain peaceful? The journalist Gideon Rachman wrote last year (Financial Times, February 4, 2013):
The final acts of the Obama foreign policy will play out in the next two years. Unfortunately, bad things happen when the world concludes that the American president has become weakened, distracted, or diffident about foreign policy.
In mid-May, speaking at a California Chamber of Commerce event, California Governor Jerry Brown made two statements that best encapsulate the feelings of Sacramento's elected leadership: "California is definitely back," Brown exclaimed followed by "this is a job creation engine."
Federal Reserve critics gathered at the Hoover Institution in Palo Alto, California last week focused on the need for consistent policy rules that suggest U.S. interest rates have already been too low for too long and should be moving higher.
PALO ALTO — Former Secretary of State George Shultzrepeatedly stole the show last week at a Hoover Institution conference on central banking practices here, no time more decisively than when he pronounced a benediction on the conference dinner.
Pity the state of American politics. Half the voters pull the country in one direction, and the other half stubbornly yank it the opposite way. Everybody seems to be screaming, not so much at each other as past each other. The United States is divided down the middle, the pundits say.
(Reuters) - A trio of Federal Reserve officials who disagree deeply with one another over the appropriate stance of monetary policy on Friday expressed a shared distrust for using interest rates to head off asset bubbles and other forms of financial instability.
Everyone has a vague understanding of the fact that the financial crisis and the Great Recession exacted a hellish price in terms of economic disruption, but nobody to this point has made the effort, or perhaps felt the need, to specifically measure the damage. -
The Federal Reserve should approach interest-rate policy more systematically by adopting a specific rule for guiding its actions and justifying any deviations from that rule to the public, Philadelphia Fed President Charles Plosser said Friday.
Federal Reserve Bank of Philadelphia President Charles Plosser said he’s “encouraged” by a report today showing faster gains in prices while calling for vigilance as inflation moves closer to the Fed’s 2 percent goal.