A typical market-based measure of expected inflation is the inflation breakeven calculated by subtracting the TIPS yield from Treasury yield at corresponding maturities. The breakeven spread is shown as the blue line in Figure 1.
The positive surprise in nonfarm payroll (NFP) employment — 379K vs Bloomberg consensus of 182K — was good news. However, it’s important to place this in context. NFP is 9.5 million lower (i.e., 6.2% lower) than the NBER peak in February 2020. In the context of key macro indicators followed by the NBER Business Cycle Dating Committee:
The COVID-19 pandemic has kept economists busy analyzing many aspects of economic side of the coronavirus impact. This note is meant to present an overview of what economists have analyzed regarding the implications of two of the main components of the CARES Act that affect individuals: the increased UI benefits and the stimulus checks. We present the findings from the literature on these two policies with an eye on potential future governmental interventions.
Taken together, these two components have been effective at providing stimulus and lowering poverty. In the aggregate, Kaplan et al. (2020) (PDF) find that the initial UI benefits and stimulus payments boosted aggregate consumption by 2 percentage points, while Bayer et al. (2020) show that the CARES transfers reduced the output loss due to the pandemic by up to 5 percentage points.
Complete note here.
The goods production side of the economy continues to recover, and monthly GDP comes close to October 2010 levels. Nonfarm payroll employment as implied by the Bloomberg survey is for a slight increase of 182K. Some key indicators followed by the NBER Business Cycle Dating Committee.
The rapid ascent in CNY reserves was in 2018, with some resumption in 2020. From 2016 to 2019, Renminbi turnover rose from 4% to 4.3% (out of 200%).
In a globalized American economy, are domestic determinants (e.g., US output gap) the only important factors?
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Per James Hamilton and Menzie Chinn
Today we are pleased to present a guest contribution written by Hongyi Chen, Senior Advisor at the Hong Kong Institute for Monetary and Financial Research, and Pierre Siklos, Professor of Economics at Wilfrid Laurier University. The views expressed here are their own and do not reflect the official opinions of Hong Kong Institute for Monetary and Financial Research or any other institutions the authors are affiliated with.