Best to own a business rather than work for one

In my effort to move away from covering Europe exclusively on this blog, I’ve returned to a little niche of economic data that had intrigued me in the past: US national income accounts/accounting. This time I’ll look at national income, specifically corporate profits – I’ve written about it before, and my colleague Ed Dolan covered it on […]

State GDP shows a manufacturing rebound in 2012

State GDP shows the following in 2012: durable goods manufacturing and finance and insurance are primary drivers of cross-sectional growth. This confirms the national story, according to the BEA. A state-level breakdown shows strong (a surge in) economic activity in North Dakota, Oregon, Texas, and Utah, as 2012 real GDP was the highest in these economies compared […]

Follow up to yesterday’s post: Euro area consumption and Investment in Q2 2013

Yesterday I illustrated the unsustainable accounting growth engine of imports occurring in the euro area (EA). Today I’ll present more of a forward looking analysis on private domestic demand within the euro area: consumption and investment. If current levels of real retail sales hold at the euro area level, then the contributions to growth in […]

Chart for the day: Growing on Imports

Or should I say barely contracting on imports. In the traditional sense, growth in imports does not make a whole lot of sense. Normal economies import and export things, such that statistical agencies subtract the dollar amount of things that are made in other economies but consumed domestically (imports) out of their tally of spending on […]

Did You Know? S&P PIIGS Ratings Edition

With the two-notch downgrade of Spain to BBB- by by S&P (link and link), I figured that this is as good a time as any to start a series called “Did You Know?”. Let’s start with the S&P’s ratings edition and a chart featuring the ratings migration across the periphery economies Greece, Ireland, Italy, Portugal, and Spain […]

Euro Area Budget? More on Tax Rates

Megan Greene comments on the leaked plan for a common eurozone budget via Herman Van Rompuy’s draft proposal. Specifically, Megan outlines key reasons why she thinks we shouldn’t ‘hold our breath’ on a common EZ budget anytime soon (a .pdf link to the proposal via Peter Spiegel at the FT). Her points are well taken. I […]

Euro area periphery countries seeing improved monetary policy transmission mechanism

The ECB released its August report of euro area MFI interest rates (link .pdf). According to mortgage and non-financial corporate lending rates, the transmission channel of monetary policy to the periphery economies improved through August. See this post for links and associated detail on the ‘hampered’ transmission channel. Since the  outset of the ECB’s most recent rate-cutting cycle […]

Follow-Up: Who Has the Most Debt in the US?

Yesterday’s post on US debt by sector brought up some interesting comments. Specifically, that there’s a stark difference between federal debt and private-sector debt (households and/or non-financial businesses). Household and non-financial business obligations are true liabilities in the sense that there’s a party on the other side that requires payment in a currency which must be […]

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