May 2014 Payroll Employment
After 76 months, we finally got back to the prerecession level of payroll employment.
Click on the image to get a bigger version.
The best summary of the state of our economy is the graph (below) of employment as a fraction of population for people over 16 years old. The decrease is large, but the most troubling feature of the graph is the flat trend .
Donald Marron likes European interest rates. Click on the image to get a bigger version. Can you find three distinct subperiods?
Brad DeLong favors the U.S. gdp gap.
Money Supply M1 growth is now over 20% per year over a 12 month lag. M1 growth has touched 20% before, but not with excess reserves of $1.6 trillion. Where is M1 headed?
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"Policy ideas on the financial crisis”
The World Bank Group
Bloggers at the IMF are looking at why Latin America fared better in this crisis than during previous episodes of financial duress. Their explanation: financial soundness mixed with enhanced credibility.
This improvement can be attributed to the fact that the region faced the crisis equipped with economic policy frameworks ...
Our friends at PBS have released a couple of interesting crisis-related television programs this week.
First, Charlie Rose has an excellent interview with Andrew Ross Sorkin (type Sorkin's name into the Charlie Rose search window to access the ...
There is an interesting article in Econbrowser by Willem Thorbecke of the Asian Development Bank, which looks at East Asian Production Networks, Global Imbalances, and Exchange Rate Coordination.
Thorbecke highlights the important relationship between exchange rates and production chains in East Asia, arguing for increased policy coordination between ...
One sign of crisis abatement is the downward slide of the US dollar. As the market rediscovers its appetite for risk, the dollar's appeal as a safe haven currency diminishes. Indeed, the dollar has become the de facto carry trade currency.
The market has renewed its faith in emerging ...
John Authers argues that the newsworthy economic story of late isn't dollar weakness; rather, it is the weak renminbi:
Many, if not most, hopes for global recovery are pinned on China buying goods from countries such as Brazil. Commodity prices, a key driver of equities and forex rates, also move in response ...
"Good news for investors who like to lose all their money". LTCM 3.0 is here.
The dangers of ultra cheap money.
Is US Government debt actually "risk-free"?
Historically, a weak dollar has been deflationary.
A few days ago I offered a series of bubble warnings from a German financial pundit, two academics, the man who broke the Bank of England, and the man who built Singapore. Today, we have a warning from the
There is a short but sweet article from All Roads Lead to China on Shanghai's 100 hardest jobs, which looks at the lives of China's poorer workers (who make up the bulk of the country's 1.3bn citizens). The editors conducted over 100 interviews with workers ranging from a ...
The editors of the Financial Times appear to be concerned about bubbles. Three out of today's four op-eds are dedicated to the theme.
First, George Soros argues that the implosion of 2008 was an aggregation of a series of bubbles over the past decades, creating, in his words, a "super-bubble":
The crash of ...
I recently wondered what the relationship between developed and emerging economies would look like during the recovery phase of the crisis:
Will a robust emerging market rebound boost OECD growth? Or, are we due to see a multi-speed global recovery?
John Authers points out that, thus far, the ...