and is forecasted to continue to lag.
What Remains of the High Policy Uncertainty-Lagging Investment Thesis?
The abstract from the recent IMF’s World Economic Outlook chapter on investment:
Private fixed investment in advanced economies contracted sharply during the global financial crisis, and there has been little recovery since. … business investment accounts for the bulk of the slump, and the overriding factor holding it back has been the overall weakness of economic activity. In some countries, other contributing factors include financial constraints and policy uncertainty. These findings suggest that addressing the general weakness in economic activity is crucial for restoring growth in private investment.
Foreign Reserve Accumulation Tails Off
And actually decline, in dollar terms.
Currency Manipulation, the RMB and Misalignment, Yet Again
In his criticism of the Trans Pacific Partnership, Senator Schumer discussed at length the need to counter currency manipulation, with particular reference to China. (See developments here.)
Trends in Poverty in Wisconsin
Poverty, estimated using the official criteria and poverty threshold, or including taxes and non-cash benefits, rises in Wisconsin (while the officially reported Census measure declines in the US). [minor edits to clarify MDC 4/23]
Hitting the Fed’s targets
The economy has steadily been moving closer to the Fed’s long-run objectives. But we’re still not there yet.
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Three Four Five Graphs Regarding Wisconsin Economic Policy
Wisconsin employment falls in March; continues to lag the Nation.
Springtime for Walker and Wisconsin
Winter for …
From Milwaukee Journal Sentinel:
The University of Wisconsin-Madison will eliminate about 400 positions, most of them vacant, and will close or restructure several academic programs across campus over the next two years in response to state budget cuts, Chancellor Rebecca Blank announced on her blog Friday.
Divergences: Interest Rates, Nominal, Real, Short, and Long
I’ve been wrapping up some long term projects (not planned as long term — they just took longer than expected) on interest rate parity and term spreads, and that spurred me to look at current patterns in interest rates. Some quick observations: interest rates remain higher in emerging markets than in core industrial countries. So too are real rates are higher despite higher inflation rates. And term spreads are larger in the US than other countries.
Guest Contribution: “Chinese Outwards Mercantilism – the Art and Practice of Bundling”
Today we are fortunate to have a guest contribution written by Joshua Aizenman (USC and NBER), Yothin Jinjarak (Victoria Business School), and Huanhuan Zheng (Chinese University of Hong Kong). This post is based upon the paper of the same title.