What does a conventional (estimated) macroeconometric model imply for a sustained 7.7% increase in government consumption and investment as a share of GDP in terms of output.
Author Archives: Menzie Chinn
Guest Contribution: “Argentina: A Big Change with Problematic Initial Conditions”
Today, we are pleased to present a guest contribution written by Maria Muniagurria, faculty member in Economics at the University of Wisconsin – Madison.
A little over two months ago, Mauricio Macri began his tenure as president after his coalition of center-right parties prevailed over the ruling party’s candidate by a small margin.
What Is the Assumed Output Gap in the Friedman Projections?
Or, “Is current output really 18% below potential output?”
Chinese Foreign Currency External Debt
One constraint on devaluation as a means of stimulating the economy comes from the balance sheet. When there is a big stock of external debt denominated in foreign currency, a devaluation increases the amount of debt evaluated in domestic currency terms, potentially driving some firms into insolvency. How does China look in these terms?
Trade Policy Parallels
Surely, it’s occurred to others, but I find the following comparison of trade policy stances quite remarkable.
The Counter-cyclical Stabilization Policies of the Democratic Presidential Candidates
In this post, I assess how the candidates would implement macroeconomic stabilization policy, given the big reform packages proposed by the candidates, in particular those by Senator Sanders, are highly unlikely to be passed by a fully or partly Republican Congress. On the other hand, a downturn in the next four years is much more plausible; hence, knowing the candidates’ views on macro stabilization policy is arguably more relevant.
Guest Contribution: “Financial Regulatory Transparency and Sovereign Borrowing Costs”
Today we are fortunate to be able to present a guest contribution written by Mark Copelovitch (University of Wisconsin – Madison), Christopher Gandrud (City University of London), and Mark Hallerberg (Hertie School of Governance, Berlin).
Yield Curve, February 11th
Given worries regarding an imminent slowdown in the wake of the stock market decline, it’s of interest to see what the term premium is signalling.
China Navigates the Trilemma (and Slowing Growth)
Benn Steil and Emma Smith at the Council on Foreign Relations present an interesting picture of Chinese reserves.
Stall Speed in Wisconsin?
The Philadelphia Fed has released leading indicators for December. Essentially zero growth in Wisconsin over the next six months is predicted.