Impact of US Monetary Policy on Global Economies
The US monetary policy is the Federal Reserve’s actions and communications to achieve the economic goals set by Congress. Some of those goals include maximum employment, moderate long-term interest rates, and stable prices. The US monetary policy significantly impacts the global economies mainly through the ‘global financial cycle’. Changes in the US interest rates influence ... Read more
Best to own a business rather than work for one
In my effort to move away from covering Europe exclusively on this blog, I’ve returned to a little niche of economic data that had intrigued me in the past: US national income accounts/accounting. This time I’ll look at national income, specifically corporate profits – I’ve written about it before, and my colleague Ed Dolan covered it on ... Read more
State GDP shows a manufacturing rebound in 2012
State GDP shows the following in 2012: durable goods manufacturing and finance and insurance are primary drivers of cross-sectional growth. This confirms the national story, according to the BEA. A state-level breakdown shows strong (a surge in) economic activity in North Dakota, Oregon, Texas, and Utah, as 2012 real GDP was the highest in these economies compared ... Read more
Who has the most debt in the US?
This was the question posed to a group of my colleagues as regards the merits of US fiscal and monetary policy: guess who has the most debt in the US economy? Everyone at the table said ‘the government’. When most pundits talk of ‘government debt’ they are inherently referring to federal government, who is not ... Read more