It must be awfully frustrating to get a small raise at work and then have it all eaten by a higher cost of commuting.
Importantly, in the 1930s, in the Great Depression, the Federal Reserve, despite its mandate, was quite passive and, as a result, financial crisis became very severe, lasted essentially from 1929 to 1933.
The movement toward a holistic approach to community development has been long in the making, but the housing crisis has motivated further progress.
The failure of Lehman Brothers demonstrated that liquidity provision by the Federal Reserve would not be sufficient to stop the crisis; substantial fiscal resources were necessary.
The role of liquidity in systemic events provides yet another reason why, in the future, a more system wide or macroprudential approach to regulation is needed.
The central bank needs to be able to make policy without short term political concerns.
Every effort needs to be made to try and offset the costs of Katrina and Rita by reductions in other government programs, especially those that are wasteful, duplicative and ineffective.
Building a rainy-day fund during good times may not be politically popular, but it can pay off during the bad times.
There will not be an automatic increase in interest rate when unemployment hits 6.5%.
As an educator myself, I understand the profound effect that good teachers and a quality education have on the lives of our young people.
If the fiscal cliff occurs, I don't think the Federal Reserve has the tools to offset that event.
In any given month, a large number of workers are being hired or are leaving their current jobs, illustrating the dynamism of the U.S. labor market.
The ultimate purpose of economics, of course, is to understand and promote the enhancement of well-being.
Economic science concerns itself primarily with theoretical and empirical generalizations about the behavior of individuals, institutions, markets, and national economies. Most academic research falls in this category.
High levels of homeownership have been shown to foster greater involvement in school and civic organizations, higher graduation rates, and greater neighborhood stability.
The more guidance a central bank can provide the public about how policy is likely to evolve the greater the chance that market participants will make appropriate inferences.
Actually, I'm a Republican.
Monetary policy is not a panacea.
Smart financial planning - such as budgeting, saving for emergencies, and preparing for retirement - can help households enjoy better lives while weathering financial shocks. Financial education can play a key role in getting to these outcomes.
Clear communication is always important in central banking, but it can be especially important when economic conditions call for further policy stimulus but the policy rate is already at its effective lower bound.
