The December 2013 issue of In the Balance discusses how the average American household has nearly recovered from the financial crisis, but certain families and areas of the country are still seeing greater recoveries than others.
Quantitative easing has led to the largest expansion of the Fed’s balance sheet since World War II. While this, naturally, leads to concern about inflation, the Fed has the tools to unwind the balance sheet once the economy builds steam.
Is one method of searching for a job better than another? Do job seekers change their approach when a recession hits?
Since November 2008, the Federal Open Market Committee (FOMC) has been using bond purchases to reduce long-term interest rates to support housing markets, employment and real activity. The FOMC has varied these large-scale asset purchases—commonly called quantitative easing (QE)—with the perceived state of the economy. Its most recent incarnation of QE, QE3, announced in two phases (Sept. 13, 2012 and Dec. 12, 2012), committed the Fed to monthly purchases of $85 billion in bonds.
The short-term volatility of the price of nondurable goods, especially energy, may explain why inflation occasionally appears off target. The recent decline in average inflation may be partially attributable to the ongoing reduction in the cost of durable goods and a significant deceleration in the inflation rate of services expenditures.
The current housing boom is the first nationwide boom since the postwar era not driven by increased demand for owner-occupied housing.
Firms started during recessions, especially those started in 2008, have grown less during the first three years of their life than those started in nonrecession years.
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