UK to oppose EU renewable energy target http://t.co/GsRbG4ZcZU
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Roubini Topic Archive: Macroeconomy
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By One Key Budget Indicator, the Structural Primary Balance, Even Greece Is Doing Better Than the United States. Why That Should Worry Us.
We in the United States know that we have a deficit problem, but when we hear news of the ongoing crisis in Europe, we feel a little better. At least we’re in better shape than Greece, Italy, and the other Eurozone basket cases. Aren’t we? Think again. By one key measure of fiscal health, the [...]
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Sharp Slowdown in Nominal GDP Growth Adds to Pressure on Fed
The latest data from the Bureau of Economic Analysis show real GDP growth slowing to a 1.5 percent annual rate in Q2, down from 2 percent (revised) in Q1. That pathetic figure looked almost good to many observers who expected even worse. However, the more worrisome, although less noticed, number was the slowdown of nominal [...]
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The Moral Limits of Markets: When is Standing in Line Better than Paying a Price?
In his book What Money Can’t Buy: The Moral Limits of Markets, Harvard Professor Michael J. Sandel invites us to engage in a public debate on the proper role of markets in society. It is a question, he says, to which economists do not give enough thought. I agree. I am happy to join the [...]
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What Happened When Poland’s Fixed Exchange Rate Experiment Failed: Lessons for a Euro Divorce
In a recent paper, Arnab Das and Nouriel Roubini compare exit from the euro area to a divorce. (See long form here, short form here.) When we hear that friends are heading for the divorce court, two questions immediately come to mind. Why did this arrangement, which seemed like a good idea at the time, [...]
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Latest Jobs Data Show Employment Ratio Remains Low: Why Legalizing Marijuana Would Help it Recover
The U.S. job numbers for March, released today, show moderate, although not spectacular short-term gains: 120 thousand new payroll jobs, unemployment rate down a notch to 8.2 percent. Long-term indicators are less healthy. In particular, as the chart shows, the employment-population ratio fell by 0.1 percent and remains just a fraction above the all-time low [...]
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U.S. Domestic Income Grows Strongly in Q4 2011, Outpacing Growth of GDP
According to the final figures released this week by the Bureau of Economic Analysis, U.S. Gross Domestic Income grew at a strong 4.4 percent annual rate in Q4 2011. Growth of GDI outpaced that of GDP, which was unrevised at 3 percent, itself the strongest of the year. As the chart shows, it was the [...]
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How to Protect Wetlands and How Not to Do it: Lessons from Tax Policy
Tax reform is a hot topic. Both Republicans and Democrats say they’re for broadening the tax base, closing loopholes, and lowering tax rates. Bruce Bartlett’s new book is getting a lot of well-deserved attention. So while we’re at it, why not reform implicit taxes, too? Regulations to protect wetlands, to the extent that they reduce [...]
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February Jobs Market Report Shows Across the Board Strength
The latest report from the BLS shows across the board strength in the U.S. jobs market. Data on payroll jobs, unemployment rates, and labor force participation all showed a gradually strengthening economy. The headline increase of 227,000 new payroll jobs (233,000 in the private sector) was down a little from the January report. However, that [...]
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Finally, Proof (Real Proof, not Just Data) of What Inflation Has Done to Our Economy
Anyone who has ever risked blogging about inflation knows there are two kinds of commenters out there. First, there are those who are sure that inflation, although quiet lately, is poised for a big breakout that will destroy the economy. Second, there are those who are sure inflation has already done so, and that anyone [...]
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Latest Data Suggest Output Gap is Closing but Employment Gap is Closing Faster
The latest GDP data from the Bureau of Economic Analysis indicate that the output gap narrowed in Q4 2011 at a slightly more rapid pace than previously estimated. The second estimate, released February 29, showed US real GDP growing at a 3 percent annual rate last quarter, up from the 2.8 percent advance estimate released [...]
