Ed Dolan's Econ Blog

Archive for November, 2011

  • Downward Revision of US GDP Strengthens Case for New Stimulus

    The second estimate of U.S. GDP for the third quarter of 2011 shows a downward revision, making the real growth rate 2 percent rather than the 2.5 percent reported in last month’s preliminary estimate. The slowing growth rate makes the expansion look weaker than before and strengthens the case for new stimulus. Almost all of […]

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  • On Technical Barriers to Leaving the Euro and Learning from Others’ Experience

    When discussion turns to the possibility that some country might leave the euro, much is often made of the technical difficulties of introducing a new currency, especially of the months, even years, of planning that went into launching the euro in the first place. Sample: “Computers will have to be reprogrammed. Vending machines will have […]

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  • Easing Inflation Pressure Gives Fed Extra Room to Maneuver in Face of Euro Crisis

    US inflation pressures continued to ease in October, according to the latest data from the Bureau of Labor Statistics. With the struggling US economy facing headwinds from the euro crisis, low inflation gives the Fed a welcome extra bit of room to maneuver. The headline CPI actually fell at a 1 percent rate during October. […]

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  • Understanding the New View of Poverty (2): What Helps and What Hurts

    Last week, the Census Bureau published a new Supplemental Poverty Measure (SPM) that changes our understanding of poverty in America. The first installment of this post looked at the way it erodes our stereotypes of who is poor, especially by showing that there are more poor white, working-age, home-owning Americans than we thought. No matter […]

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  • Understanding the New View of Poverty (1): The Erosion of Stereotypes

    We all thought we knew who is poor in America. Children, especially in one-parent households. Racial minorities. Families who aren’t able to participate in the great American dream of home ownership. Really? The Census Bureau’s new Supplementary Poverty Measure (SPM) erodes all of these stereotypes. They still contain some truth, but less than it seemed. […]

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  • October Job Growth Still Slow but Details Hold a Bit of Good News

    The Bureau of Labor Statistics reported only 80,000 new payroll jobs in October, still a very slow tempo. However, there was a bit of good news hidden in the revisions for earlier months. The August payroll job figure, originally reported as a shockingly bad zero gain, was revised upward to a more respectable 104,000. September’s […]

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  • NGDP Targeting is the Natural Heir to Monetarism

    In a recent post, Daniel Alpert enlists Milton Friedman as an ally against the newly popular (but not new) idea of targeting nominal GDP. On the contrary, I see NGDP targeting as the natural heir to monetarist policy prescriptions of the 1960s and 70s. If we look at the textbook version of monetarism, the point […]

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