BEA released the second estimate of the first quarter GDP, and it's up from 0.5 to 0.8%. Not bad, not great. Note that federal government spending is a drag on the recovery (although local and state governments are positive force, and part of that is actually funded by the federal government anyway; so the actual negative impact of contractionary fiscal policy is smaller than what the numbers suggest). At any rate, this will be used to demand higher rates in the next meeting of the FOMC. You can bet about it. Listen to Dean Baker at the Rick Smith Show here, suggesting why this is a terrible idea.
Subscribe to:
Post Comments (Atom)
What to expect from the incoming government in Argentina
The government in Argentina has less than two weeks at this point. It is too early to pass judgment. But we can look at the legacy of the M...
-
So besides the coup in Brazil (which was all but confirmed by the last revelations , if you had any doubts), and the electoral victory of M... -
Fields, David (Forthcoming), “Classical Dichotomy,” Edward Elgar Encyclopedia on Central Banking , edited by L.P. Rochon et... -
Modern Monetary Theory (MMT) has been in the news again, and for good reasons. I actually had a post with the same title back in Februa...
No comments:
Post a Comment