Many economists and economic commentators fear that the Federal Reserve does not have an adequate exit strategy from the quantitative easing that took place during the financial crisis. Its bloated balance sheet has allegedly left a looming monetary overhang that the Fed will not be able to manage once the economy returns to normal.
In the June Situation report, I promised a better second-half economy. I did more than keep my promise. The first estimate for 2Q2014 GDP growth brought a steaming 4.0 percent, along with an upward revision of lQ2014’s growth from minus 2.9 percent to minus 2.1 percent. We swung high after swinging low.
Applying benefit-cost analysis in the White House regulatory oversight process served as a basic mission of the Council on Wage and Price Stability (CWPS) during its seven-year lifespan (1974–1981). This paper reviews that CWPS experience, which involved filing comments in over 300 proceedings at more than 25 federal regulatory agencies.
In the past two years, a spate of misleading reports on intellectual property has sought to convince policymakers and the public that implausibly high proportions of US output and employment depend on expansive intellectual property (IP) rights. These reports provide no theoretical or empirical evidence to support such a claim, but instead simply assume that the existence of intellectual property in an industry creates the jobs in that industry.
Inflation targeting emerged in the early 1990s and soon became the dominant monetary-policy regime. It provided a much-needed nominal anchor that had been missing since the collapse of the Bretton Woods system.
How have federal personal income tax obligations evolved over the past 60 years? A common perception is that the federal income tax burden on the poor has increased while the tax burden on the rich has declined. This study focuses on three archetypical households.
Have you ever had a car break down just as you felt you were beginning to get somewhere? And had to get out and hitchhike, hoofing it while hoping for a ride? If so, you know what it’s like to have your speed reduced to a crawl and to be hoping for a better ride. That’s the current situation with the economy.
Formal rulemaking requires agencies to make policy through a process akin to a trial; it involves cross-examination, burdens of proof, and a bar on ex parte communications. The idea is that formal procedures can help create better substantive policy. This form of rulemaking, however, is almost never used anymore. Instead, informal rulemaking—which is conducted through written comments, with no trial-like procedures—is now essentially the only type of rulemaking used.
Analysis of the data suggests that industries that are more regulated are also less productive. The one-third of industries that are least regulated show growth rates in output per hour and growth rates in output per worker that are 1.8 and 1.9 times, respectively, the growth rates for the one-third of industries that are most regulated.
To reflect on the significance of Hayek’s Nobel Prize and the various strands of influence his work has had in subsequent decades of scholarship, please join us for a keynote speech and panel discussion by some of Hayek’s most prominent colleagues and interlocutors.
What do GDP reports really tell us? What does economic freedom have to do with job growth? For answers to these questions and more, the Mercatus Center at George Mason University invites you to join us for an exploration of the economic situation as Dr. Bruce Yandle presents his quarterly economic commentary.