News
Market Watch | Trade deficit steady at $45.6 billion in August
The nation’s trade deficit held steady at $45.6 billion in August from the prior month, the Commerce Department said. The trade gap in July was revised up from the initial estimate of $44.8 billion.
Bloomberg | China Export Growth Dwindles to Slowest Pace in Seven Months as Yuan Gains
China’s exports rose the least in seven months and the customs bureau warned of “severe” challenges as the global economic outlook dims, giving Premier Wen Jiabao’s government less incentive to let the yuan rise.
CNN: Money | China-U.S. trade wars: What's at stake
China and the United States are the world's two largest economies and arguably each other's most important trading partners. And now, it seems the two countries find themselves on the brink of a trade war.
CNN: Money | Foreclosures continue to plague housing market
Nationwide, foreclosure filings totaled 610,337 in the third quarter, an increase of less than 1% from the previous quarter, said RealtyTrac, an online marketplace for foreclosed properties.
WSJ | Congress Approves Trade Pacts
The House passed all three deals Wednesday evening, and the Senate followed suit. The deals are expected to generate $13 billion in new exports—$11 billion to South Korea—chiefly farm products. As well, they lift a host of non-tariff barriers, including over U.S. professional services.
Econ Comments
CNN: Money | Let's stop debating our recession status. It's pointless
Arguing over whether or not we're slipping back into recession is fruitless and diverts energy and resources from the real job, which is trying to fix things.
Washington Times | MILLER: Encouraging investment in America
The capital-gains tax should be capped and eliminated.
WSJ | Families Don't Depend on the Minimum Wage
The data are clear: In most cases minimum-wage earnings are only a small fraction of family income.
Washington Times | VIEWS: South Korea critical to America’s future
Free trade agreement boon for alliance and economies.
Blogs
AEI: American | Deutsche Bank chief economist: ‘I’m an Austrian in economics’
In a world, where markets are not always liquid buy can seize up in a collective fit of panic, financial firms and investors also need a greater reserve of liquidity.
Cato @ Liberty | New Video Has Important Message: Freedom and Prosperity vs. Big Government and Stagnation
The Koch Institute video focuses primarily on the key issues of fiscal policy and regulation, but trade, monetary policy, property rights, and rule of law are examples of other policies that also are very important.
Coordination Problem | Public Choice Foundations of Macroeconomics
If you treat politics as endogenous, then I believe even many of the more market oriented proposals for macroeconomic policy will meet with frustration.
Heritage Foundation | In Pictures: What Are the Benefits of Free Trade?
Now that Congress has passed free trade agreements with Columbia, Panama and South Korea, it’s a good time to ask why the United States should support and expand free trade.
AEI: American | Krugman’s weak defense of Keynesian fiscal policy
Finally, there is evidence from fiscal expansions in the 1930s, which actually did lead to economic expansion too. … We have a model of the way the world works, and the world does indeed seem to work that way. And an implication of that model is that fiscal stimulus will work under conditions like those we face now.
Marginal Revolution | IS-LM Keynesianism, why not and which alternatives?
I am sad that the IS-LM debate devolved into IS-LM vs. close substitutes, because I meant to raise a broader set of objections to one particular kind of technocratic curve-shifting as the foundation for macroeconomic thought. Let me list a few alternative starting points for macroeconomics:
Reports
NBER | Comparing the Investment Behavior of Public and Private Firms
Listed firms invest less and are less responsive to changes in investment opportunities compared to observably similar, matched private firms, especially in industries in which stock prices are particularly sensitive to current earnings.
CBO | United States-Korea Free Trade Agreement Implementation Act
The Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation (JCT) estimate that enacting S. 1642 would reduce revenues by $31 million in 2012 and by about $7.0 billion over the 2012-2021 period.
Heritage Foundation | Taking the REINS on Regulation
Firm action by Congress to rein in costly regulation is sorely needed. Over the past few years, the cost and number of new regulations have increased dramatically. This increase did not begin with President Obama, but it has accelerated markedly during his tenure.
CBO | United States-Panama Trade Promotion Agreement Implementation Act
The Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation (JCT) estimate that enacting S. 1643 would increase revenues by $118 million in 2012 but would reduce revenues by $6 million over the 2012-2021 period.
CBO | CBO United States–Colombia Trade Promotion Agreement Implementation Act
The Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation (JCT) estimate that enacting S. 1641 would reduce revenues by $139 million in 2012 and by about $1.5 billion over the 2012-2021 period.
