It’s a dastardly French plot to disrupt morale in the U.S. I did not really hear anyone use that particular argument against allowing commuters to buy access to high occupancy vehicle lanes, often called the car-pool lanes, such as those…
Month: June 2003
Rate cut ignores money supply
As expected, the Fed’s Open Market Committee voted Wednesday to lower its target for the Fed funds rate. When the quarter-point cut is implemented, very short-term rates will be at their lowest levels in nearly half a century. It is…
External pressure holds grip on fiscal honesty
Editor’s note: This is the second of two columns on the importance of good information in economics. The first column is Markets and citizens need reliable information. Good information is crucial to sound decision-making. Market economies and democratic political systems…
It’s the economy
Economists have long noted that changes in fiscal and monetary policy generally influence the real economy only after substantial time lags. Therefore, with 17 months to the 2004 election and seven to the Iowa caucuses, whatever President Bush can do…
Markets and citizens need reliable information
Editor’s note: This is the first of two columns on the importance of good information in economics. The second column is External pressure holds grip on fiscal honesty. There was a lot of irony in the news this week. Deceptive…
Politics fuels proposal for ethanol reserves
Sen. Norm Coleman’s proposal this week to establish a strategic renewable fuels reserve is unfortunate, and clearly puts special interests ahead of the public good. To put it simply, the United States doesn’t need a strategic reserve of ethanol or…
Economic knowledge helpful, but no guarantee
Do nations follow sounder economic policies if their citizens understand basic economic principles? Minneapolis Federal Reserve Bank President Gary Stern raised that question in a brief radio interview a few days ago. The occasion was the release of a new…
Be skeptical of long-term forecasts
Imagine a time machine has just moved you back 75 years, to the spring of 1928. If you are a little hazy about history, here are a few reminders: The armistice that ended World War I will have its 10th…
Read economic headlines with a dose of skepticism
Be careful when reading headlines of economic or financial news that use superlatives. The news often it isn’t as earthshaking as the headline suggests. Consider the following two headlines “Euro breaks all-time high against dollar” and “Euro/dollar exchange rate same…