Economy News

from AIER

Established 1999

New England, USA

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Daily Economy

  • •

    Growth in the Money Supply Will Likely Push Inflation Higher

    In the long run, growth in the money supply will likely cause inflation, meaning a decline in the dollar’s purchasing power. Following the Great Recession, the Federal Reserve undertook unprecedented measures to jump-start the economy. The Fed dropped its target for short-term interest rates to historic lows. When low interest rates failed to boost the…

  • •

    A Look Ahead to Friday’s 1Q GDP Report

    The Commerce Department will release its first estimate of first quarter 2017 gross domestic product on Friday, April 28. Estimates of the growth rate for GDP vary widely leading up to the release of the report. The Federal Reserve Bank of New York produces a “nowcast” estimate on a weekly basis. A nowcast is a…

  • How Much Does Trade Affect Employment?

    •

    How Much Does Trade Affect Employment?

    How much does import competition affect U.S. jobs? We at AIER have always argued for the benefits of free trade, but it is still worth understanding what happens to those who may lose their jobs because of international competition. The benefits from trade far outweigh the costs, but as we wrote in February, one reason…

  • •

    Fixing Too Big to Fail

    Regulators misdiagnosed the causes of the 2007–8 financial crisis when they blamed private sector greed and largely ignored the role of government policy, which in fact laid the groundwork for the financial crisis. But the CBO has introduced an intriguing solution to the failed policies from before and after the crisis. In particular, the Community…

  • •

    Could Gold-Backed Digital Currency Conquer Fiat Money?

    A freely traded digital currency backed by gold may be just around the corner. This week, at the MIT Technology Review’s Business of Blockchain conference, I heard Sandra Ro of CME Group (which operates the world’s largest futures and options exchange) discuss a partnership with the U.K.’s Royal Mint to offer a digital currency called…

  • “The Business of Blockchain”

    •

    “The Business of Blockchain”

    Even though blockchain applications are in their infancy, the technology is here to stay.

  • Transfer Payments Tend to Discourage Labor Force Participation

    •

    Transfer Payments Tend to Discourage Labor Force Participation

    The labor force participation rate began a gradual decline after peaking in the spring of 2000. If the decline is to be reversed, we may need to reassess federal transfer payments that exacerbate the ongoing trend. As the dot-com crash and 2001 recession took hold, the rate was nearly 67 percent. During the economic expansion…

  • •

    Teach-the-Teachers Program Is Showcased in Boston

    AIER’s founder Col. E.C. Harwood encouraged “the educational aspects of the Institute’s work to be specifically aimed at teachers.” In addition, Harwood was interested in integrating John Dewey’s approaches to stimulating students’ and teachers’ intellectual eagerness. Dewey considered a systematic education in the subject matter as the first and the most important step for a…

  • •

    Home Builder Confidence Declines Slightly but Remains at a High Level

    The National Association of Home Builders released its April survey of home builders this morning. The survey is designed to take the pulse of the single-family housing market. The survey asks home builders to rate market conditions for three specific topics: the sale of new homes, expected sales in the next six months, and the…

  • •

    Why Mandate Post-School Plans in Chicago?

    One common question to ask high school seniors is what they will be doing after graduation. In Chicago, they may need to get ready to answer that question at the graduation ceremony itself. Mayor Rahm Emanuel has proposed that in order to graduate, Chicago Public Schools students beginning with the class of 2020 will have…

  • •

    Growth in the Money Supply Will Likely Push Inflation Higher

    In the long run, growth in the money supply will likely cause inflation, meaning a decline in the dollar’s purchasing power. Following the Great Recession, the Federal Reserve undertook unprecedented measures to jump-start the economy. The Fed dropped its target for short-term interest rates to historic lows. When low interest rates failed to boost the…

  • •

    A Look Ahead to Friday’s 1Q GDP Report

    The Commerce Department will release its first estimate of first quarter 2017 gross domestic product on Friday, April 28. Estimates of the growth rate for GDP vary widely leading up to the release of the report. The Federal Reserve Bank of New York produces a “nowcast” estimate on a weekly basis. A nowcast is a…

  • How Much Does Trade Affect Employment?

    •

    How Much Does Trade Affect Employment?

    How much does import competition affect U.S. jobs? We at AIER have always argued for the benefits of free trade, but it is still worth understanding what happens to those who may lose their jobs because of international competition. The benefits from trade far outweigh the costs, but as we wrote in February, one reason…

  • •

    Fixing Too Big to Fail

    Regulators misdiagnosed the causes of the 2007–8 financial crisis when they blamed private sector greed and largely ignored the role of government policy, which in fact laid the groundwork for the financial crisis. But the CBO has introduced an intriguing solution to the failed policies from before and after the crisis. In particular, the Community…

  • •

    Could Gold-Backed Digital Currency Conquer Fiat Money?

    A freely traded digital currency backed by gold may be just around the corner. This week, at the MIT Technology Review’s Business of Blockchain conference, I heard Sandra Ro of CME Group (which operates the world’s largest futures and options exchange) discuss a partnership with the U.K.’s Royal Mint to offer a digital currency called…

  • “The Business of Blockchain”

    •

    “The Business of Blockchain”

    Even though blockchain applications are in their infancy, the technology is here to stay.

  • Transfer Payments Tend to Discourage Labor Force Participation

    •

    Transfer Payments Tend to Discourage Labor Force Participation

    The labor force participation rate began a gradual decline after peaking in the spring of 2000. If the decline is to be reversed, we may need to reassess federal transfer payments that exacerbate the ongoing trend. As the dot-com crash and 2001 recession took hold, the rate was nearly 67 percent. During the economic expansion…

  • •

    Teach-the-Teachers Program Is Showcased in Boston

    AIER’s founder Col. E.C. Harwood encouraged “the educational aspects of the Institute’s work to be specifically aimed at teachers.” In addition, Harwood was interested in integrating John Dewey’s approaches to stimulating students’ and teachers’ intellectual eagerness. Dewey considered a systematic education in the subject matter as the first and the most important step for a…

  • •

    Home Builder Confidence Declines Slightly but Remains at a High Level

    The National Association of Home Builders released its April survey of home builders this morning. The survey is designed to take the pulse of the single-family housing market. The survey asks home builders to rate market conditions for three specific topics: the sale of new homes, expected sales in the next six months, and the…

  • •

    Why Mandate Post-School Plans in Chicago?

    One common question to ask high school seniors is what they will be doing after graduation. In Chicago, they may need to get ready to answer that question at the graduation ceremony itself. Mayor Rahm Emanuel has proposed that in order to graduate, Chicago Public Schools students beginning with the class of 2020 will have…