Long-run CPI trend Figure 1: CPI for all items and all items less food and energy This graph shows the long-run CPI trends since the…
Month: January 2017
Wednesday’s release of the Consumer Price Index (seasonally adjusted for All Urban Consumers) revealed inflation of .3% in December of 2016, leaving annual 2016 inflation…
Try to build a simple Excel simulation of our growth model, streamlined. We can embed it in a full production function, but just use the…
For many people, mortgage rates are the most important rates they will consider in their entire lives. Because of this, mortgage rates need to be…
We frequently see claims that a lower tax rate – particularly of corporate or personal income taxes – will work miracles. That is seldom the…
Treasuries and corporate bonds are two types of investments ruled by interest rates. The interest rate on corporate bonds will always be higher due to…
In his article, “What Is the New Normal for U.S. Growth,” John Fernald argues that the United States could plausibly see a decline in average…
Arbitrage. With perfect foresight and no risk premium the return one-year bond should be equal to the interest rate on a six-month bond bought today,…