Recent indications are that, in the face of declining inflation, ECB President Draghi is considering embarking upon quantitative easing. Despite the technical difficulties accompanying such a measure [0] [1] I believe additional stimulative measures are nonetheless called for.
Wisconsin Economic Activity Forecasted to Lag
No catch-up in sight for Wisconsin with Minnesota [1] (or the Nation, for that matter)
IMF World Economic Outlook Released
From the IMF:
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The Unfootnoted Assault on the Minimum Wage Increase – Wisconsin Edition
The Wisconsin Manufacturers and Commerce group has a recent piece, written by Scott Manley (VP), highlighting negative impacts of a minimum wage increase. I have attempted to track down the numbers cited. It has been an illuminating experience.
2014 Econbrowser NCAA tournament challenge winner
Congratulations to James Gualtieri, winner of the world famous Econbrowser NCAA tournament challenge.
The effectiveness of unconventional monetary policy
Last week ECB President Mario Draghi revealed that the European Central Bank has been considering large-scale asset purchases as a tool to prevent European inflation from falling too far below the ECB’s target rate of 2%. What is the evidence for the effectiveness of these policies, and are there any risks?
What Happened When Government Spending Rose … and Fell in WW II?
After government spending fell, industrial production, GDP, and consumption decline, and unemployment rises.
Reader Patrick R. Sullivan tries to argue that the US economy boomed immediately after the reduction in government spending at the end of World War II.
Employment Growth Up
BLS reports nonfarm payroll employment up by 192 thousand, and prior months revised up.
The Ryan Plan: Assume a Can Opener, Yet Again
(The can opener reference can be understood by clicking here)
The budget proposed by Representative Ryan touts the pro-growth impacts of deficit reduction ($5.1 trillion over ten years, according to Table S-2). It is instructive to actually read the documents that Representative Ryan’s budget cites (as it has in the past — read about the Heritage CDA previous assessments [1] [2], as well as Representative Ryan’s previous attempt to use CBO documents to lend a patina of respectability to his projections).
Guest Contribution: “Commodity-Price Comovement and Global Economic Activity”
Today we are fortunate to have a guest contribution by Ron Alquist, Policy Adviser at the Bank of Canada, and Olivier Coibion, Assistant Professor at the University of Texas, Austin. The views expressed here are those of the authors and should not be interpreted as representing the views of the Bank of Canada or any other institution with which the authors are affiliated.