EconoMonitor

Ed Dolan's Econ Blog

  • Five Reasons Not to Fear Deflation: Which Ones Make Sense?

    In a post earlier this week, I explained why a majority of economists fear deflation. They argue that deflation disrupts the operation of financial markets and labor markets in a way that risks touching off a downward spiral. At the same time, they say, deflation weakens the power of monetary policy to reverse the downward […]

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  • Why Should Europe (or Anyone Else) Fear Deflation?

    This is the first of a two-part series on deflation, which continues with “Five Reasons Not to Fear Inflation: Which Ones Make Sense?” This additional post updates the euro deflation story through December 2014 and discusses the impact of oil prices on deflation in Europe. Europe is fearful as it teeters on the brink of […]

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  • The Economic Future (if Any) of “Novorossiya”

    Last May, I posted an item on the economic situation in the rebellious regions of Eastern Ukraine, or “Novorossiya” (New Russia), to use the term increasingly favored by separatists and  their Russian sponsors. Novorossiya was the name of a province of Tsarist Russia that occupied much of the southern part of present-day Ukraine, stretching all […]

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  • Strong Job Growth, Big Revisions Send US Unemployment Below 6 Percent

    The US unemployment rate fell to 5.9 percent in September, dropping below 6 percent for the first time in more than six years. The decrease was powered, in part, by strong growth of payroll jobs. Payroll jobs increased by 248,000 in September, well above the average for the year to date. In the same report, […]

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  • As Exports Soar, US Economy Closes in on Fed’s Targets

    Revised data released today by the Bureau of Economic Analysis show that the US economy grew at a 4.6 percent annual rate in the second quarter of 2014, even faster than the 4.2 percent previously estimated. That was the most rapid quarterly growth since Q4 2010. Much of the upward revision was due to the […]

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  • Everything That’s Wrong with the US Tax System in One Chart

    Last week the Tax Foundation released its annual International Tax Competitiveness Index for 2014. The United States ranked 32 out of 34 OECD countries surveyed. Only Portugal and France got lower competitiveness scores, and not by much. As if that were not bad enough, the competitiveness score is only half the story. When you put […]

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  • From Chronic Shortage to Looming Surplus: The Economics of the Blood Market

    A market for blood? Many Americans, used to being rewarded for a donation with a warm feeling of public service rather than cold cash, might see the idea as offensive. “I would guess 99 percent of people don’t know that blood is sold,” says Ben Bowman, CEO of General Blood, a national blood brokerage firm, […]

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  • Broad and Long-Term Unemployment Fall to New Lows Despite Slowdown in Payroll Job Growth

    The Bureau of Labor Statistics reported Friday that the broad unemployment rate and long-term unemployment have fallen to new lows for the recovery, despite a slowdown in the growth of payroll jobs. Payroll employment increased by 142,000 in August, significantly less than the 212,000 average for the previous three months. The standard unemployment rate fell […]

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  • US Corporate Profits Rebound from Winter Slump as GDP Growth Looks Even Stronger than Thought

    The latest data from the Bureau of Economic Analysis show that US GDP grew at a 4.2 percent annual rate in the second quarter of 2014, even more strongly than previously reported. Corporate profits showed the beginnings of a rebound from their winter slump. Although they remain short of the all-time highs reached over the […]

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  • A Universal Basic Income and Work Incentives. Part 2: Evidence

    In Part 1 of this series, I outlined some basic economic theory regarding a universal basic income (UBI) and work incentives. By a UBI, I mean an income support policy that provides a set monthly benefit to every citizen. A UBI, as I define it, would to everyone, regardless of income, wealth, or employment status. […]

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