Today we are fortunate to have a guest contribution by Michael Weber, assistant professor at the University of Chicago’s Booth School of Business. This post is based upon a paper, co-authored with Francesco D’Acunto and Daniel Hoang.
Current economic conditions: not as bad as it sounds
On Friday the Bureau of Economic Analysis released its second estimate of U.S. 2015:Q1 real GDP growth. The BEA now estimates that the economy contracted at a 0.7% annual rate rather than grew 0.2% as originally estimated. The number is discouraging, though I see some silver linings.
Continue reading
Kansas Macro and Fiscal Crash
Economic activity stalls, and the Republicans conclude that higher taxes are necessary for higher tax revenue.
[with update 6/2 on the April forecast]
Wisconsin GOP Targets Faculty Tenure
From Greg Neumann/WKOW:
“JFC” is Joint Finance Committee. The text of the motion is here. Stein and Herzog/Journal Sentinel here. The article notes the following contrast: “Minnesota raised taxes with part of the new revenue set aside for higher education.”
“Crony Capitalism”: Wisconsin Edition
RightWisconsin writes:
…crony capitalism is currently wreaking havoc on the conservative Republican brand of free markets and limited government.
Gasoline prices and consumer sentiment
U.S. retail gasoline prices last week averaged over $2.80 a gallon, thirty cents higher than a month ago. The preliminary University of Michigan index of consumer sentiment for May was 88.6, down 7 points from the month before. Are these two developments related?
Continue reading
Interest Rate Parity and Exogeneity
One of the enduring puzzles of international finance is the fact that the joint hypothesis of uncovered interest parity and rational expectations is consistently rejected, as evidenced by the coefficient estimates in the Fama regression.
Exchange Rate Regimes and the Global Financial Cycle
Relevant or Irrelevant?
UCSD Chancellor’s Associates Award
I was recently honored to receive the UCSD Chancellor’s Associates Award for Excellence in Research and Social Sciences. Here’s a video they made for the event.
Keine Roten Kartoffeln für Sie!
Auch keine Garnelen, in Wisconsin.* (Seriously! See page 3, line 9, and lines 14-15, in the bill) From the Milwaukee Journal Sentinel:
Under [the] bill, food stamp recipients could not use the program to buy crab, lobster, shrimp or other shellfish. Additionally, they would have to use two-thirds of their benefits on beef, pork, chicken, produce or foods that qualify for the federal Women, Infants and Children nutrition program. The remainder could be used on foods already allowed under the food stamps program, other than shellfish.