Author Archives: Menzie Chinn

Teaching Mundell-Fleming, Interest Rate Parity, and the LM Curve

Simon Wren-Lewis’s post has sparked vigorous discussion [1] [2] (and rejoinder) of whether the teaching of Mundell-Fleming, omitting uncovered interest parity, to our undergraduate students is defensible. In addition, he wonders whether it makes sense to use an LM curve, given the absence of a stable money demand curve, and the fact that most advanced country central banks target a policy rate. I think these are good questions for teachers, as well as those who provide advice regarding policy measures.

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Wisconsin Employment: Still Lagging despite Upward Revisions

Earlier this week, the BLS released new estimates of state employment, based upon Quarterly Census of Employment and Wages (QCEW) data through September 2012. The figures for Wisconsin have been substantially revised upward. As indicated in previous posts [1] [2] , census data had indicated substantially higher nonfarm payroll employment than that derived from surveys.

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