A trillion dollars used to be a sum that never naturally came up in normal conversation. Now all of a sudden, it’s the standard unit we seem to be using to talk about our economic problems and what we’re trying to do about them. Fortunately, I think I finally got a handle on what $1 trillion really means.
Author Archives: James_Hamilton
Stock prices and fundamentals
How low can stock prices go, and how worried should you be?
The Bernanke rally
Tuesday’s stock market rally was pretty impressive. But can the mere words of the Federal Reserve Chair actually produce a 4% increase in the value of the U.S. capital stock?
Deflation risk down but not out
While this week brought some pretty frightening numbers on industrial production and manufacturing surveys, I viewed Friday’s CPI release from the Bureau of Labor Statistics as slightly encouraging.
Prospects for the U.S. banking system
Some thoughts on the extent of the problem and options for solution.
Projected size of the deficit
It’s interesting that as we discuss the magnitude of the economic problems and proposed solutions, the units everything is quoted in have gone from billions to trillions.
Former Bernanke home in foreclosure
A couple of stories that provide some personal perspective on the scope of the current problems.
The Treasury’s Financial Stability Plan
Here’s my two cents on the latest two trillion.
Kash Mansori on a home purchase tax credit
We’re pleased today to feature a guest contribution to Econbrowser from Kash Mansori, senior economist for Jefferson Wells International.
The paradox of thrift
Or, how come you used to say that if consumers don’t save more, it will wreck the economy, and now you say, if consumers do save more, it will wreck the economy?