And what we can do about it
From Macroeconomic Advisers and e-forecasting, some recent reads on the macroeconomy:
Links for 2011-11-15
Quick summaries of a few items of interest.
Exports in the Recovery (II)
Following up on my previous post on the export contribution in the recovery (averaging 2.6 ppts since the trough), here are some additional observations. First, export growth in the current recovery has been substantially greater from the trough than in the last three recoveries.
Greece, Italy, and financial stability
The drama began in Greece. Where is it going to end?
I Killed Some Brain Cells Today
I ran a regression of ΔY on ΔX and ΔZ, over the 1967Q1-2011Q3 period. I found that the coefficient on ΔX was 0.007, and on ΔZ was -0.080. Neither coefficient was statistically significant at conventional levels, so I concluded that neither affected ΔY.
Decisions, decisions
The U.S. State Department received the application from TransCanada for permission to build the Keystone XL Pipeline Extension over 3 years ago. Today, the White House made a firm decision not to decide just yet, with the State Department indicating that an actual decision is at least another year away.
Nice to see the President is focused like a laser on how to get Americans back to work.
Has Austerity Brought a Boom in the UK?
Or Generalissimo Francisco Franco redux.
In “UK: Economic growth, double-dips and the PMI,” (G. Buckley, Deutsche Bank, Nov. 4, 2011, not online):
UK GDP grew by 0.5% qoq in Q3, but the position the economy is in is now officially worse than it was in the aftermath of the Great Depression. Add to this the weakening in the composite PMI
survey for October (particularly the manufacturing report), also published this week, and escalating risks for a sharper euro area recession, and the stage possibly looks set for a much bleaker
picture by the end of this year/start of 2012.
Shovel ready
Some infrastructure spending is more stimulative than others.
Guest Contribution: “What can exports tell us about the economy?”
Today, we are fortunate to have Jay C. Shambaugh of the McDonough School of Business at Georgetown University as a guest contributor.
There has been considerable debate lately about why the U.S. economy continues to struggle. Some — notably economists on the right and some Federal Reserve Bank Presidents — have argued that concerns about future taxes and regulation are preventing American businesses from investing and hiring. Other economists have argued that we have inadequate aggregate demand in the economy and that explains slow GDP and employment growth — not fear of future government policy.
Photos from a (Book) Forum
From Prakash Loungani’s blog:
A standing-room only audience at the IMF last month heard a presentation by [Menzie] Chinn and [Jeffry] Frieden [on Lost Decades], along with comments from Diane Lim Rogers (Concord Coalition), Gail Cohen (Joint Economic Committee) and Simon Johnson (MIT and Peterson Institute). The forum was moderated by Nobel Prize-winner George Akerlof.