From “Keystone XL Pipeline Project: Key Issues,” CRS Report R41668 (Jan. 24, 2013):
Author Archives: Menzie Chinn
Heritage Still at the Cutting Edge
From J.D. Foster, Ph.D., “Budget Cuts Would Not Harm the Economy” (February 14, 2013):
The [basic Keynesian] theory fails because it relies on the unstated fantasy government can magically create demand out of thin air. In fact, government must borrow to finance deficits, and all borrowing subtracts from the funds that would otherwise be available and used in the private sector for private investment or private consumption. …
The Low Income Wage Bill Responsiveness to a Minimum Wage Increase
Quasi partial equilibrium algebra and a graphical analysis
Quantitative Easing, Intervention, and Currency Wars, Again
Thinking about what is driving — and will drive — the yen
Sequester in the Time of ZLB
In several weeks, absent action by policymakers, the Federal government will begin implementing $85 billion worth of across-the-board cuts during FY2013 (i.e., in the months before October). [0]
Some Thoughts on the Recovery, Conditional Forecasting, and Proper Citations
More analysis from the Heritage Foundation
A Comparison of Selected Economic Indicators for Minnesota vs. Wisconsin
And assessing Walker’s “open for business” program thus far
Evolving Views on Fiscal Multipliers
Context relevant estimates suggest larger, not smaller, fiscal multipliers.
The January 2013 Employment Release
Private nonfarm payroll employment in continues to rise, by 166,000; December 2012 employment is revised up by 0.6% (log terms), when incorporating the benchmark revision (0.5% for total nonfarm payroll employment).
The 2012Q4 GDP Release: Upside and Downside Risks
Defense spending subtracted considerably; more to come if the sequester occurs. Uncertainty weighs—perhaps. Trade volumes decline. But final sales continue upward. And confusion about demand side analysis persists.