Comments Read by 10, people The Fed has no mandate outside the 50 states, but it unofficially determines foreign debt and currency markets across the globe in a big way anyway.
The Trump Tariff Offensive The Spellman Report Tariffs revision designed to cure trade deficits have become a live and contentious economic policy issue.
For a long time in the post WWII era, the US trade balance with the rest of the world as a percent of GDP was a small positive number, that is, we had a trade surplus as shown below up until the early ls.
Firms that invest are seeing gains in after-tax corporate profit, thanks to expansionary fiscal policy from tax cuts and accelerated depreciation on new capital goods. There is also increased spending on military. Many countries have since followed this game plan, a trend with lasting implications for future economic growth.
According to the Keynesian script, governments achieve the requisite spending to thrust an economy out of a recession via a dose oflow central bank interest rates to incent private parties to borrow and spend.
In the Keynesian mindset, spending is the key to recovery — never mind if the spender has to go into hock to do it.
Indeed the notion of the proportionality of money and prices exists in academia as well. It is known as the quantity theory of money, for which Milton Friedman received a Nobel Prize in The proportionality of money and prices has a long history. It probably first derived from events when gold was the money in question: There was a time when rising stock prices with or without rising earnings would attract a crowd of eager investors wishing to join the momentum.
But today, like so much else in economics and finance it seems to be working upside down and backwards. The videos of the slow growth economy discussion can be found HERE.
The third evening was a discussion of the current investment dilemma especially for Baby Boomers with the need for asset accumulation and investment income in these extended financial markets. The video of that discussion was not preserved but I provide the power point outlines here: There are clear reasons why this is happening, but where does it leave investors today?
As the plane climbed on take-off, it collided with a flock of birds that disabled its engines. The Second Coming of the Conundrum The mention of globalism causes most people to think of open trade, but globalism has another dimension to it.
And that is financial globalism.
Furthermore, it contributes to why the Federal Reserve does not seem to be able to control the long term interest rate, a condition known as the Conundrum. But first, a little background.ECO Multiple Choice Questions. It generally takes _____ for monetary policy action to affect real real GDP xxxxxxxxx C xxxx xxx decreases x real GDP xxxxxxx a decrease xx consumption xxxxxxxxxxx xxxxxxxx 15 xx 20 5 x Points What xxxx of xxxxxxxxxxx xxxxxx policy xx an increase xx the health xxxx budget xxx xxxxxxxx without xxxxxxxxx A.
Type: Multiple Choice Points Awarded: 1/1 Your Answer(s): ° monetary policy Correct Answer(s): ° fiscal policy ° foreign policy ° military policy ° monetary policy (correct) Question _____ consists of several tools to control and to influence the growth of the money supply%(42).
Who must file. In some cases, the amount of income you can receive before you must file a tax return has increased.
Table 1 shows the filing requirements for most taxpayers. Exemption phaseout. You lose at least part of the benefit of your exemptions if your adjusted gross income is above a certain.
June 22, | EPI Briefing Paper # Reviving full employment policy Challenging the Wall Street paradigm. by Thomas Palley. Download print-friendly PDF version.
The U.S. Monetary Policy Forum has become an important venue for promoting an exchange of views among policymakers, academics, and financial market participant. The U.S. Monetary Policy Forum has become an important venue for promoting an exchange of views among policymakers, academics, and financial market participant From that point.
Using the monetary policy tools at its disposal, the Federal Reserve can promote an environment of price stability and reasonably damped fluctuations in overall economic activity that helps foster the health and stability of financial institutions and markets.