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April 30, 2007

Four Years after "Mission Accomplished"

I thought that it was proper and fitting to evaluate the state of affairs in Iraq four years after President Bush declared the end of major military combat operations in Iraq.

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Posted by Menzie Chinn at 09:00 PM permalink | Comments (36)

April 29, 2007

Consumption smoothing and economic slowdowns

How alarming is it that 200% of 2007:Q1 GDP growth came from consumption spending?

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Posted by James Hamilton at 05:56 AM permalink | Comments (20)

April 27, 2007

Recession probability index rises to 16.9

The Bureau of Economic Analysis reported today that U.S. real GDP grew at an annual rate of 1.3% in the first quarter of 2007, moving our recession probability index up to 16.9%. This post provides some background on how that index is constructed and what the latest move up might signify.

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Posted by James Hamilton at 01:41 PM permalink | Comments (21)

April 26, 2007

The Economic Integration of Greater China

An assessment of real and financial integration, co-authored by Yin-Wong Cheung (University of California at Santa Cruz Economics), Menzie D. Chinn (University of Wisconsin at Madison La Follette School and Economics) and Eiji Fujii (Tsukuba University, Graduate School).

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Posted by Menzie Chinn at 08:50 PM permalink | Comments (5)

Further implications of the productivity slowdown for the dollar

In a previous post, I noted that the slowdown in economic growth in the US relative to rest-of-OECD would have a number implications for the dollar's value in nominal and real terms.

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Posted by Menzie Chinn at 09:27 AM permalink | Comments (10)

April 25, 2007

Current economic conditions improve

Let's admit it-- the other shoe is not yet dropping.

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Posted by James Hamilton at 02:29 PM permalink | Comments (20)

April 24, 2007

Why are gasoline prices going up again?

Blame crude oil and the calendar.

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Posted by James Hamilton at 07:00 PM permalink | Comments (28)

April 23, 2007

A New Era for the Dollar?

Riding the dollar's decline.

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Posted by Menzie Chinn at 02:05 PM permalink | Comments (21)

April 21, 2007

Weekend links

Assorted links to updates on some of the stories we've been following at Econbrowser, including declining Saudi Arabian oil production, the role of mortgage-backed securities, and pressures on public pension funds to take on additional risks.

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Posted by James Hamilton at 07:10 AM permalink | Comments (23)

April 19, 2007

The politics of future promises

I have been detailing concerns about meeting the pension and health care obligations of the city and county of San Diego. Although these challenges arise at the level of our local government, the problem appears to be national in scope, as a sampling of stories from PensionWatch makes clear.

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Posted by James Hamilton at 08:52 AM permalink | Comments (20)

April 18, 2007

Patent protection and technological innovation

There is a potential conflict between the two that we ought to revisit as the nature of technological advance itself undergoes profound changes.

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Posted by James Hamilton at 09:22 AM permalink | Comments (24)

April 17, 2007

The Coming (?) US Current Account Adjustment: Two Questions Inspired by Two Graphs

The IMF has recently released its Global Financial Stability report. Two figures inspired two questions from me.

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Posted by Menzie Chinn at 08:08 AM permalink | Comments (13)

April 16, 2007

New estimates of macroeconomic effects of tax changes

Berkeley Professors Christina and David Romer have an interesting new research paper estimating the macroeconomic consequences of tax changes.

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Posted by James Hamilton at 04:21 PM permalink | Comments (25)

April 15, 2007

Trade adjustment via import compression or export expansion?

From Saturday's New York Times, the case is made that the G-7's dream scenario of global rebalancing, with more rapid growth in Europe pulling up demand for US goods, is finally underway:

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Posted by Menzie Chinn at 11:20 AM permalink | Comments (8)

April 13, 2007

The Last Throes of PoMo Macro?

That is to say, is Post-Modernist Macroeconomic Policy over?

From Postmodernism:

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Posted by Menzie Chinn at 04:00 AM permalink | Comments (23)

April 12, 2007

Hedge fund regulation

Fed Chair Ben Bernanke yesterday explained why he sees no need for increased regulation of hedge funds.

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Posted by James Hamilton at 08:31 AM permalink | Comments (12)

April 10, 2007

Are Democrats Truly More Protectionist? (Part II)

There was some disagreement with my assertion that Democrats were -- effectively -- not as protectionist as many have argued. Here are some more thoughts on the matter, as the Administration prepares the case for countervailing duties on Chinese imports [1].

Continue reading "Are Democrats Truly More Protectionist? (Part II)"

Posted by Menzie Chinn at 10:56 PM permalink | Comments (12)

April 09, 2007

More on Freddie Mac and Fannie Mae

More data, that is, and more questions.

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Posted by James Hamilton at 06:48 PM permalink | Comments (11)

April 08, 2007

Employment in March: Comparisons across Measures, Time, and Levels vs. Growth

The March employment figures have almost universally been hailed as evidence of a strong labor market, given how the announced value exceeded expectations, and the fact that previous months values were revised upward (WSJ1, WSJ2, Reuters, Bloomberg; contrarian opinion at Big Picture, Capital Spectator). (Jim Hamilton has already discussed how likely these figures are to be revised, in light of other complementary data.) Without disagreeing, I think it behooves us to consider other ways of looking at the data.

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Posted by Menzie Chinn at 10:50 PM permalink | Comments (21)

April 07, 2007

Exchange rate depreciation and expenditure switching in the United States

The IMF's April 2007 World Economic Outlook has been released -- or at least part of it. One chapter, entitled Exchange Rates and the adjustment of External Imbalances [pdf], deals with a subject close to my heart.

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Posted by Menzie Chinn at 11:58 AM permalink | Comments (9)

April 06, 2007

Strong March employment growth

The Bureau of Labor Statistics reported today that U.S. nonfarm payrolls, as measured by their survey of establishments, increased by a seasonally adjusted 180,000 workers in March.

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Posted by James Hamilton at 08:02 AM permalink | Comments (25)

April 05, 2007

Cantarell fading quickly

A big challenge for Mexico and the rest of us.

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Posted by James Hamilton at 06:19 PM permalink | Comments (12)

April 04, 2007

New study of the determinants of oil prices

Professor Lutz Kilian of the University of Michigan has an interesting new paper on the historical determinants of crude oil prices.

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Posted by James Hamilton at 05:28 AM permalink | Comments (17)

April 02, 2007

The Subprime collapse and the housing market: a bubble or "looting"

Jim Hamilton's recent post "Bubble, bubble, toil, and trouble" elicited a tremendous amount of commentary -- and incredulity -- amongst the readers.

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Posted by Menzie Chinn at 07:40 PM permalink | Comments (24)

April 01, 2007

More speculation about Saudi Arabia

The Oil Drum has been featuring some very interesting speculation as to the meaning of the ongoing drop in Saudi Arabian oil production.

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Posted by James Hamilton at 01:57 PM permalink | Comments (24)