A perspective on the federal deficit problem

Budget deficits ; Fiscal policy

Currency appreciation and "deindustrialization": a European perspective

During the 1980s, policy advisers were successful in promoting the view that movements in the value of the dollar have an inverse relationship to U.S. international competitiveness. This article explains their hypothesis, as well as the counterargument that exchange rates positively reflect a country's competitiveness. Economic policies that boost competitiveness also raise the value of the domestic currency. The mirror image of these hypotheses apply to U.S. trading partners, including Europe. The evidence indicates that European countries were not "deindustralized" from 1985 to 1990, when the ECU rose in value by more than the dollar had risen in 1980-1985. Instead, European competitiveness rebounded strongly in the late-1980s, reversing the stagnant performance of the early-1980s. Similarly, during the early-1980s, when the United States was, on one unsupported view, deindustralizing, European nations generally did not enjoy a surge in their share of output or capital formation. Instead, they suffered from "Euroscierosis".European Economic Community ; Foreign exchange rates ; Competition

Public capital and private sector performance

Capital ; Productivity

The P-star approach to the link between money and prices

This paper examines several specification errors in the M2-based P* model and develops an M1-based estimate of this model. The apparent statistical significance of M2 is shown to arise from a spurious regression that uses a non-stationary regressor and because the significance test for M2 is biased by including the influence of a lagged dependent variable whose coefficient is not normally distributed. When these problems are addressed, M2 is not statistically significant related to the price level. The M1-based P* model exhibits a significant relationship between M1 and the price level, however.Inflation (Finance) ; Prices ; Money supply

How federal farm spending distorts measures of economic activity

Gross national product ; Agricultural price supports

Two views of the effects of government budget deficits in the 1980s

Budget deficits ; Debts, Public

U.S. investment in the 1980s: the real story

Capital investments ; Saving and investment ; Crowding out (Economics)

Money market deposit accounts, super-NOWs and monetary policy

Monetary policy ; Money market deposit account

Potential output and the recent productivity decline

Gross national product ; Productivity

Inventory investment in the recent recession and recover

Investments ; Business cycles