Ed Dolan's Econ Blog

Archive for December, 2016

  • What Is the Nairu and Why Does it Matter?

    In December 2016, after a year-long pause, the Fed resumed its tightening of monetary policy. As usual, the action took the form of a quarter point increase in the target range for the federal funds rate (a key rate that banks charge  on short-term loans to one another). Is still more tightening in store?  Most […]

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  • Deplorables Didn’t Elect Trump, Jams Did

    Hillary Clinton famously characterized Donald Trump’s voters as a “basket of deplorables,” but she was wrong. Our friends, the British, have figured it out: Trump was elected not by deplorables, but by jams. “Jams,” short for “Just About Managing,” is the new term has swept British political discourse. They are defined as a social class […]

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  • One Chart Shows Why the Odds Keep RisingThat the Fed Will Raise Rates

    Will policymakers at the Fed raise interest rates at their December meeting? Wall Street  oddsmakers increasingly think they will. One simple chart shows why. The chart tracks the economy’s progress toward the central  bank’s target of “stable prices and maximum employment.”  The Fed’s rate-setting Federal Open Market Committee (FOMC) has operated under this so-called  dual […]

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