What does the election mean for the economy?

Last Wednesday, Liz Fedor and I discussed the implications of Donald Trump's victory on the economy and economic policy at an Econ in English event at CSB|SJU.  It will be broadcast today at noon and 9 pm on Minnesota Public Radio. If you have more questions, send a note and I'll try to address them here. … [Read more...]

Presidential campaign economics

On Tuesday, I had the pleasure of giving a talk to the Senior College of West Central Minnesota. I meet with this group 2-3 times a year, and I always look forward to the conversation. I know that I'll be asked smart, direct questions from thoughtful people, and this session of about 150 people exceeded my lofty hopes. Our topic was Presidential Campaign Economics.  My slides are here. Also, I … [Read more...]

Why not consols?

Nominal interest rates on US government debt are at historical lows.  Today's Treasury yield curve data shows the following: The longest maturity bond the federal government currently issues is 30 years, with a yield today of 2.22 percent.  With an inflation rate of 2 percent of less, this means the federal government can borrow at a real rate close to 0 (zero) percent. For five years, … [Read more...]