April Issue of St. Louis Fed's The Regional Economist Now Available

ST. LOUIS – The April 2011 issue of The Regional Economist, the Federal Reserve Bank of St. Louis’ quarterly review of business and economic conditions, is now available.  The full issue can be accessed online at www.stlouisfed.org/publications/re/

The issue’s articles include:

• “Banking Crises around the World: Different Governments, Different Responses” – Over the past 40 years, there have been more than 120 banking crises around the world.  Different governments have responded in different ways.  The gross and net costs as a percentage of GDP range wildly, anywhere from less than 1 percent to well beyond 30 percent.
•  “Why ‘Fixing’ China’s Currency Is No Quick Fix” – Even if China does revalue its currency, jobs aren’t likely to come flooding back to the U.S. Much of what China exports to the U.S. originates in other Asian countries; the U.S. trade deficit with Asia is likely to persist as long as U.S. domestic preferences for savings and investment remain unchanged.
• “Are Small Businesses the Biggest Producers of Jobs?” – It’s often said that small businesses generate the most jobs in the U.S.  This is true if one looks at the gross number of jobs.  But because small businesses have a high failure rate, they are not the largest producers of jobs at the net level.
•  “Jobless Recoveries: Causes and Consequences” – Among the causes is the decline of middle-skill jobs over the past 30 years in this country.  Among the less-obvious consequences are an increase in crime, poorer eating habits and fewer marriages.
• “Which Came First – Better Education or Better Health?” – Better-educated people appear to be in better health than less-educated people.  But does more education cause better health?  There are other factors at play, such as income and access to information.  
• “The Economy Continues To Strengthen, but Risks Remain” – GDP is rising.  Financial markets have healed.  The worst of the housing crisis appears to be over.  But the large deficit of the federal government poses multiple risks to a sustained recovery.  
• “Employment in Major Cities in the District Slumps Relative to the Rest of the Country” – Three of the four major metropolitan statistical areas (MSAs) in the District performed better than the country as a whole in restoring jobs following the 2001 recession.  That’s not the case, though, in the wake of the latest recession.