Economy

My Favorite Graph: Lagged RER-NX

Paul Krugman writes on The Dollar and the US Trade Deficit today, and reminds me of my favorite graph (makes…

1 month ago

Risks, 2025 | Econbrowser

Top of my list: Source: Kalshi, accessed 1/3/2025. Would this be bad news? Well, yes. But worse yet given the…

1 month ago

The Price and Income Elasticities of US Trade Flows

JW Mason asserts that, in focusing on the real exchange rate, I’m on the side of relative prices being the…

1 month ago

A Manufacturing Recession? | Econbrowser

Once again, Heritage’s EJ Antoni speaks (on Fox) about a manufacturing recession, focusing on employment. I’ll just point out that,…

1 month ago

Alternative Business Cycle Indicators as of the Year’s Start

The Philadelphia Fed’s Coincident Index is out, 2.1% m/m annualized (2.6% y/y): Figure 1: Implied nonfarm Payroll early benchmark (NFP) (bold…

1 month ago

Year End Disinversion: Bull or Bear Steepening?

With December 31 data, here’s the picture of term spreads:     Figure 1: 10yr-3mo Treasury spread (blue), 10yr-2yr Treasury…

1 month ago

“Revisiting the Relationship Between Debt and Long-Term Interest Rates”

From CBO, a working paper by Andre R. Neveu (FDIC) and Jeffrey Schafer (CBO) on the debt sensitivity of the…

1 month ago

Intra-industry Trade Estimated | Econbrowser

Oren Cass argues the idea of comparative advantage driving trade is outdated. I agree to a certain extent, but he…

1 month ago

When Econ 101 Isn’t Enough: Oren Cass on Trade

In Tuesday’s NYT, Oren Cass makes the case for protectionism. It would be wonderful to see economists willing to try…

1 month ago

Business Cycle Indicators for November 2024

Consumption and personal income ex-transfers growth accelerate. Figure 1: Nonfarm Payroll (NFP) employment from CES (blue), implied NFP from preliminary…

1 month ago