The Congressional Budget Office has issued some dire forecasts about the U.S. economy, which is causing alarm in some quarters. But do those forecasts make sense? As Andrew Van Dam […]
Author Archives: Robert Barbera
In a companion CFE blogpost, we acknowledge that the supersized fiscal stimulus enacted earlier this year invites serious angst about accelerating inflation. We make the case that the inflation risks […]
Was the recently enacted Biden stimulus package too large? Is it likely to produce an economic boom so large that it does real damage? And is that damage even more […]
There is much excited talk in the press these days about the rise in ten-year yields to 1.5 percent and the rise to 2 percent for the breakeven inflation rates expressed when we comparing Treasury nominal and TIPS yields. The bond vigilantes are back! Another Great Inflation around the corner!
In December of 2019, the U.S. unemployment rate stood at 3.6% and prime age labor force participation, at 82.9%, was at an 11 year high. Today, December 2020 jobs figures were released, with unemployment at 6.7% and participation at 81%, both making it clear that today’s economic backdrop is bleak. These data also make clear that engineering an extended period of strong growth is highly justifiable.
In the spring of 2009, amid the darkest moments of the Great Recession, I published a book and a blogpost. The book, reviewed here, championed the notion that mainstream macroeconomic thinking failed to appreciate, for good and ill, the central role that finance plays in capitalist economies.
No sooner was the ink dry on the March 27 $2 trillion stimulus package than Washington began work on the next stimulus. This is the right thing to do. Deficit […]
Two burning questions confront all of us: How big is our public health problem? How sharp is our economic retrenchment? We think that the toolkit of economic forecasters has something […]
The global COVID-19 outbreak now sports exponential growth rates for cases and deaths on every continent save Antarctica. Students of the economy must add that we are also in the […]
Crude oil prices plunged on Monday, as Saudi Arabia has announced that they will ramp up production to punish recalcitrant OPEC members, including and especially Russia. Rising supply alongside a […]
President Trump tweeted on Christmas Eve that he was “all alone (poor me).” It was a sentiment with which Fed Chairman Jerome Powell could sympathize. As 2018 came to a […]
The outlook for growth in employment and corporate earnings over the next few years is headed down. The problem is not what the Federal Reserve will do, or what a […]