China’s industrial revolution over the past 35 years is probably one of the most important economic and geopolitical phenomena since the original Industrial Revolution in the 18th century. The rapid growth has puzzled many, in part because China tried and failed at this transformation before. What was the “secret” this time?
Setting the fed funds rate is just one step. The Fed also has to deal with the discount rate and the interest rate paid on reserves. Throw in a floor system (with a subfloor!) and overnight reverse repos, and you’ve got a process that is anything but simple.
Before there is discussion on what can and should be done about income inequality, interested parties should understand the different methods that can be used to measure the gap. Knowing when the gap has been particularly wide or narrow over the past 50 or so years would also be helpful.
The ups and downs of commodity prices can have a huge impact on the economies of the producing nations (emerging, as well as developed). Increasingly, these economies are susceptible to the needs of a single buyer: China.
The Federal Open Market Committee wants its interest-rate decisions to be data-dependent. But until the past several years, much of the statistical information available—not just to the FOMC, but anyone—had come from reports that looked backward at conditions from the previous month or even quarter. New models developed by economists allow for forecasting of conditions in the current quarter as reports arrive on a day-to-day basis—as in now. Hence, “nowcasts.”
Strong job growth, consumer spending and housing activity bode well for the economy this year.
The percentage of foreign-born in the four major metro areas of the District is smaller than for the nation as a whole. However, some of the metro areas are showing faster growth in their Asian, African and Latin American populations than is the nation overall.
This small MSA scores well on educational attainment, cost of living, employment in health care services and in other categories. Still, output and job growth are relatively slow.
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Fed in Print: An index of the economic research conducted by the Fed.