Roger Farmer has taken a new look at an issue concerning the Federal Reserve’s program of large-scale asset purchases (referred to in the popular press as “quantitative easing”) that I’ve been discussing on Econbrowser and in my research with University of Chicago Professor Cynthia Wu for some time.
New Quarterly Gross State Product Series: Wisconsin and Minnesota
The BEA has released a new quarterly Gross State Product (GSP) series for states — a tremendous innovation for those of us interested in tracking state economies.
Chinn-Ito Financial Openness Index Updated to 2012
The Chinn-Ito index revised and updated to 2012 is now available here.
UCSD graduate program in economics
I saw an interesting statistic in the latest issue of Journal of Economic Perspectives. If you rank North American economics Ph.D. programs in terms of the publishing success of their median student in the first six years after graduating, UCSD comes in second.
Number one? Seems to be Princeton.
(Not) The Leader of the Pack: Wisconsin and Her Neighbors
Today the Philadelphia Fed released coincident indices (measures of aggregate economic activity) for the states and the US. Wisconsin outperforms Kansas — a very low bar — and yet has lagged all her neighbors.
Wisconsin Employment Trends in Context
Following up on last Thursday’s post, here is a depiction of how Wisconsin and Kansas — ALEC darlings — fare against Minnesota and California.
Implications of Procyclical Fiscal Policy: Wisconsin Edition
I’ve read several comments lauding the move toward a structural budget balance in Wisconsin under Governor Walker’s administration. I decided to take a look at what the actual evidence for a surplus is, and what the economic impact has been of policies purported to improve economic performance.
Reaching for yield
The unfunded liabilities of the San Diego County Employees Retirement Association have increased every year for the last five years, reaching $2.45 billion last year, more than quintuple the level in 2008. The calculation of how big the shortfall is assumes that the fund is going to be able to earn a 7.75% return on its investment after subtracting administrative costs. If it earns less than 7.75%, the shortfall will be even bigger. A 10-year Treasury bond currently pays 2.4%, and a typical stock has a dividend yield under 2%. So what do you do if you’re in charge of the system’s $10 billion in assets?
Wisconsin Employment under Walker
Continued stagnation in July.
The National Savings Identity, Crowding-Out, and Apocalypse Predicted
Consider this prognostication from 2011:
Americans face the most predictable economic crisis in this nation’s history. Absent reform, the panic ahead is no longer a question of if, but rather when. A deterioration of confidence by investors in government’s ability to pay its bills will drive interest rates up, increasing borrowing costs for government, small businesses and families alike. A vicious cycle of debt will compound upon itself; the available exit options once the crisis hits will be limited; and all will involve pain. (p.59)