Despite lagging nation, St. Louis economy recovers in 2014, led by health care and financial service sectors. Housing struggles, but population growth improves.
Some countries’ business cycles are in sync with the world’s, while other countries’ cycles follow the ups and downs just of their neighbors’. This regional connection is even more prevalent if a region is defined not by geography but by common cultures and institutions.
This look at interest rates and inflation in the U.S. over the past 50 years helps to clarify ideas about the Fed’s monetary policy and its own credibility. The authors examine three periods corresponding to three different policies: when the Fed operated without credibility, when it was earning credibility and when it was operating with credibility.