Archive for February 29th, 2012

One size fit monetary policy for US??

February 29, 2012

It seems to be a US vs Euro blogposts day. I covered a paper from Fernando Nechio which looked at one size fit monetary policy for Europe. The paper divided the EMU countries into EMU-core and EMU-periphery and showed how ECB’s one size fit policy was  tight for EMU-periphery.

In a new paper Fernando Nechio along with Israel Malkin look at US this time. Just like Europe, US is made of different states/regions and it is a strong chance that some are doing better than the rest. But Fed makes policy for the country as a whole. So, are there problems just like we see in Europe??

In this paper, instead of looking at 50 states, authors divided US into four regions and calculate the Taylor rule for the five regions.

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Economic Rebounds in U.S. and Euro Zone: Deceivingly Similar, Strikingly Different

February 29, 2012

Is the title of this new research  from Dallas Fed econs.

They say the rebound of GDP from the current recession is broadly the same. So this is deceivingly similar. However, what is strikingly different is productivity has also rebounded but this is not the case for Europe. So there are two puzzles here:

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