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Series:Economic Letter 

Journal Article
U.S. gasoline imports rise following temporary easing of fuel standards

EPA fuel standards were temporarily waived following major Gulf Coast hurricanes in 2005 and 2008, including Katrina. The results suggest that more uniform environmental standards could help foreign refiners meet extraordinary U.S. gasoline demand.
Economic Letter , Volume 9 , Issue 8 , Pages 1-4

Journal Article
Health care services depress recent PCE inflation readings

Health care services, which historically helped push core measures of inflation higher, have restrained recent readings. Among them is the personal consumption expenditures price index, favored by Federal Reserve policymakers deliberating interest rate changes.
Economic Letter , Volume 11 , Issue 11 , Pages 1-4

Journal Article
A historical look at the labor market during recessions

Turmoil in housing, credit and financial markets plunged the U.S. economy into a recession that has taken a heavy toll on the labor market. The weakness that began during the second half of 2007 gravely worsened during a period of extreme financial stress in 2008, and the labor market has yet to recover. To put the recession's labor-market impact into perspective, we compare the past two years to previous downturns, including the Great Depression. We also examine the data commonly used to assess labor market conditions. While unemployment rates and nonfarm payroll losses are widely reported, ...
Economic Letter , Volume 5

Journal Article
Foreclosures’ silver lining: they could restrain rent inflation

Rental inflation has surpassed historic levels despite a supply of housing that partly reflects a persistent inventory of foreclosed, vacant homes.
Economic Letter , Volume 8 , Issue 1

Journal Article
Durable goods and the collapse of global trade

Global trade has experienced a stunning collapse in the current recession, with the World Trade Organization estimating a decrease of roughly 9 percent in 2009--the biggest contraction since the Second World War. The swift decline caused substantial damage to the global economy, hitting Japan and other countries with large trade sectors especially hard. It also raised concerns that the trade collapse would worsen the global recession and delay recovery. ; Several factors contributed to the global trade collapse. However, the ultimate causes are tied to the global financial crisis that started ...
Economic Letter , Volume 5

Journal Article
Financiers of the world, disunite

When large in number, intermediaries—even those reputed for high risk and correlated strategies—exhibit substantial diversity that adds an important element of stability to the financial system.
Economic Letter , Volume 6 , Issue 13

Journal Article
From complacency to crisis: financial risk taking in the early 21st century

During the first half of this decade, the belief that new financial products would adequately shield investors from risk encouraged financial flows to less creditworthy households and businesses. By late 2006, U.S. financial markets were flashing warning signals of a potential financial crisis. ; In a sign that investors had become too complacent, risk premiums had all but vanished in junk bond and emerging-market interest rate spreads. Then, conditions changed abruptly. In the important and usually stable market for asset-backed commercial paper, premiums on three-month paper over Treasury ...
Economic Letter , Volume 2

Journal Article
America’s Missing Workers Are Primarily Middle Educated

The labor force participation rate has fallen since 2008, partly due to an aging population and despite a more highly educated one. After accounting for aging, those whose highest educational attainment is a high school diploma, some college or an associate degree have primarily driven the participation decrease.
Economic Letter , Volume 12 , Issue 4 , Pages 1-4

Journal Article
The 'Great Moderation' in output and employment volatility: an update

The reduced aggregate volatility that began in 1984 has continued into the new millennium.
Economic Letter , Volume 2

Journal Article
Fed policy in the financial crisis: arresting the adverse feedback loop

An adverse feedback loop takes hold when a weakening financial system and a slowing economy feed off each other. A crisis or shock curtails lending, hobbling the real economy; the more production and employment falter, the more lending contracts. ; Arresting the adverse feedback loop could prove to be the seminal challenge of early 21st century monetary policymaking. Since sounding the alarm in January 2008, the Fed has taken a series of actions--many unprecedented--to prevent additional damage to financial markets and restore lending activity. These policies have had some success in ...
Economic Letter , Volume 4

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