Archive: Economic and Financial Digest

October 31, 2017 | Economic and Financial Digest

The Inflation/Employment Puzzle

Mother Nature upended the economic landscape during the late summer months as Hurricanes Harvey and Irma wreaked havoc along the Gulf Coast. The humanitarian toll was the most troubling consequence of the storms; millions of Americans endured severe property damage, if not outright destruction, while countless others either perished or suffered bodily harm. While the […]

September 28, 2017 | Economic and Financial Digest

The Income Spending Gap

While the political version of the “theater of the absurd” continues to run its course, the economy remains in a state of sublime detachment. By now, more than eight months into the Trump administration, it is almost certain that its ambitious tax and spending agenda will either be extremely watered down or fail to see […]

August 21, 2017 | Economic and Financial Digest

Low Recession Risk

In the 1990s economists turned to the 19th century children’s story of the three bears, invoking Goldilocks to describe the U.S. economy. The description was apt, as it painted a picture of an economy that was not too hot or too cold, much like the porridge tasted by the curly-haired girl of the fairy tale. […]

July 20, 2017 | Economic and Financial Digest

The Low Inflation Puzzle

As the second half of the year gets underway, the economy is entering the ninth year of recovery from the Great Recession. But don’t uncork the champagne, as this anniversary has as many critics as celebrants. True, the upturn has been durable, lasting longer than eight of the 11 postwar expansions. But it is also […]

June 16, 2017 | Economic and Financial Digest

Washington Dysfunction

As the summer season starts to heat up, so too is the economy. The first quarter’s slowdown is already history and the financial markets, along with policy makers, are gearing up for what looks like a solid rebound in the second quarter. The labor market continues to do its part, generating jobs at a faster […]