In January 2008, ExxonMobil and Norway’s Statoil announced a promising discovery in the Julia Field in the Gulf of Mexico that may contain a billion barrels of oil. In October of that year, Exxon applied for a 5-year extension of the lease for time to develop a suitable development plan. To the company’s surprise, the U.S. Department of Interior denied the request in February 2009, and has continued to turn down subsequent appeals. The company has
filed a lawsuit to have the decision overturned.
Fidei defensor
Or, some people continue to defend the view that rapid inflation is just around the corner
An Econbrowser reader writes, in defense of Governor Perry’s assertion that the Fed is debasing the currency: “The CPI is not a valid indicator of ‘debasement.'” I think this comment provides a wonderful example of the Alice in Wonderland world in which some people reside — if the data do not cooperate, redefine the terms!
Waiting for the Fed to act
Economic conditions are deteriorating. Here’s how and when the Fed might intervene.
Tax Expenditures
Not dead yet
We had a couple of pretty scary economic developments last week, but as far as I can tell, we’re still standing.
The Slowdown at Home and Abroad
Governor Perry on Monetary Policy
From the Washington Post:
…”If this guy [Fed Chairman Bernanke] prints more money between now and the election, I don’t know what y’all would do to him in Iowa, but we would treat him pretty ugly down in Texas. Printing more money to play politics at this particular time in American history is almost treacherous, or treasonous, in my opinion.”
Economic consequences of recent oil price changes
Earlier this year, disruptions in Libya and the resurgence of demand from the emerging economies sent oil prices up sharply, a development that many economists believe contributed to the slow growth for 2011:H1. The chaotic markets of the last few weeks saw oil prices drop back down to where they had been in December. Will that be enough to revive the struggling U.S. economy? There is some evidence suggesting that it may be too late.
Chinn and Swagel on Radio Times: “Economic News Roundup”
This morning, I was a guest on WHYY’s Radio Times with Marty Moss Coane. The other panelist was Phill Swagel, and topics covered the stock market, the stimulus, and the state of the economy. One can hear the podcast here: [mp3].
Still Waiting for Expansionary Fiscal Contraction in the UK
And Generalissimo Francisco Franco is still dead (with apologies to the under 35 set).
Since in the U.S. we are currently embarking upon a program of reducing fiscal stimulus, it seems useful to examine whether this action would result in rapid economic growth as some have predicted. The UK is at the forefront of conducting this fiscal experiment.