Debt Ceiling: A Treasury Note

Secretary of the Treasury Geithner just sent Senate Majority Leader Harry Reid a letter. Noting that in 5 days the US will again have hit the debt ceiling, Secretary Geithner explains that actually, we might have an extra 2 months.…

GDP: Where is the World Economy Going?

Yesterday, the UN published a preview of its world economic outlook. While projections are always debatable, their graphs provide a snapshot of key economic issues. GDP Outlook: Oil Prices: Grain Prices:   These projections and comments from a Société Générale Report…

Fiscal Cliff Notes

There might be 2 ways to look at the fiscal cliff. Specifically, we can focus on tax increases and spending cuts: Tax Increases Bush era tax cuts: expire 2010-2011 2% payroll tax cut: expire Affordable Care Act taxes: kick in…

Economic Uncertainty

Uncertainty might impede economic growth. The research of several economists indicates that policy uncertainty foreshadows and might even cause slower economic activity. To prove their hypothesis, they created an Index of Economic Policy Uncertainty with 3 data components: 1) The…

A New View of the Fiscal Cliff and Greece

Merle Hazard’s newest song is “Fiscal Cliff.” While he recorded his “Greek Debt Song” several years ago, it still is relevant and fun to watch. Econlife looked at fiscal cliff details here and, for more on Greece, you might want to…

What is the Fiscal Cliff?

The fiscal cliff is composed of 8 tax and spending events. Permitting all to occur might be the equivalent of jumping over the edge in an economic dive. Tax Increases Bush era tax cuts: expire 2010-2011 2% payroll tax cut:…