Archive for February 17th, 2009

U.S. Long-Run Potential Growth Rate Compromised

February 17, 2009

St. Louis Fed President Bullard asserted today that the U.S. long-term potential growth rate has not declined.  I strongly disagree. A sense of the long-term growth rate can be gleaned from the average rate of growth over very long periods of time.  Twenty-five years ought to suffice.  U.S. real GDP expanded 3.9% per annum between […] More

U.S. Balance of Payments and The Dollar

February 17, 2009

The broadest aggregate of U.S. capital movements compiled by the Treasury Department showed a net $74.0 billion inflow in December, 85% greater than that month’s goods and services trade deficit of $39.9 billion.  The Treasury so-called TIC figures exclude direct investment and thus are less comprehensive than data compiled by the Commerce Department, which will […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Big Decline in Equities

February 17, 2009

Amid mounting signs of an intensifying global recession, stocks fell by 1.4% in Japan, 3.8% in Hong Kong, 4.1% in South Korea, 2.9% in India, 3.1% in China, 3.4% in Vietnam, 2.6% in Singapore, 1.8% in Indonesia and 1.5% in Australian.  In Europe, share prices ore down 1.8% in France and Germany and by 1.5% […] More