A Strange Kind Of Goldilocks

By Chandrashekar (Chandra) Tamirisa, (On Twitter) @c_tamirisa

Flattr this

US economy is in goldilocks.

The three years since 2009 have seen three programs of Quantitative Easing (QE) and each of the years 2010, 2011, and 2012 has logged an annual real growth rate of around 2%. Unemployment has steadily fallen from around 9.8% to 7.5%, approximately at the rate of about 0.2% every 3 months, creating on average about 150,000 jobs every month since January 2010. Inflation has remained in the range of 1% to 2% every year.

The summary is QE, 2% annual real growth rate, steadily declining unemployment and inflation within target.

When viewed from outside the box of conventional monetary policy, one would be compelled to observe that ultra-loose monetary policy may indeed be the neutral rate of interest.

Advertisements

About Chandrashekar (Chandra) Tamirisa

http://www.thecommonera.com/Common_Era/Me.html
This entry was posted in Economics, Monetary Policy, North America and Caribbean and tagged . Bookmark the permalink.

One Response to A Strange Kind Of Goldilocks

  1. QE has nine lives?
    http://wallstcheatsheet.com/stocks/investors-bullish-on-belief-that-qe-has-nine-lives.html/2/

    On Fed policy:
    http://m.seekingalpha.com/article/1413511

    A wise observation from Neil Irwin of The Washington Post: http://wapo.st/12wmFlz

    FT on QE distortions:
    http://app.ft.com/#content/35444342

    Robert Samuelson of The Washington Post on unemployment:
    http://wapo.st/18oEI3a

    The Atlantic Monthly on Long Term Unemployment
    http://m.theatlantic.com/business/archive/2013/04/the-terrifying-reality-of-long-term-unemployment/274957/

    Washington Post on employment and recovery:
    “job creation in the recovery from the Great Recession has been bottom-heavy. Most of the 165,000 net new jobs that the Labor Department reports were added in April came in low-wage sectors, such as retail, food service and temp work. A study last year by the National Employment Law Project found that low-wage occupations accounted for one in five jobs lost during the recession — but they accounted for three out of five jobs added in the recovery.”

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s