The Mysterious Case of the Misfiring Monetary Policy

By Karen Shaw Petrou

When former Fed Chairman Bernanke launched a new approach to U.S. monetary policy earlier this year, he prompted many within and outside the U.S. central bank to call for sweeping change that would solve the “mystery” Janet Yellen says bedevils post-crisis monetary-policy transmission.  Just like the blue carbuncle Sherlock Holmes eventually found inside a large goose, central bankers are searching for a new gemstone within reams of data by which to guide increasingly complex policy-transmission channels.  Continue reading “The Mysterious Case of the Misfiring Monetary Policy”

The Morass That Swallowed the Middle Class

By Matthew Shaw

While much of the inequality debate focuses on the gains of “the 1%,” less attention has been paid to the economic well-being of what is broadly termed the middle class, which is all too often just lumped into the other “99%.”  However, focusing the debate on only the 1% obscures important trends within each of these groups, including that there is ample evidence that the gains of the 1% are largely driven by the wealthiest among this already-elite group along with diminishing prospects for the rest of us.  Today, we look at one of these groups with diminishing prospects and a concerning trend recently highlighted by IMF staff: the “hollowing out” of the U.S. middle class.  Continue reading “The Morass That Swallowed the Middle Class”

Is America Really Richer?

By Karen Shaw Petrou and Matthew Shaw

On September 21, the Federal Reserve released its quarterly study of American’s net worth.  As with the Fed’s earlier study on U.S. economic happiness, the release trumpeted the good news revealed in the latest aggregate data.  For net worth, this means a new record in the second quarter, with national household net worth hitting an unprecedented $96.2 trillion.  But, the Fed’s data do not go farther to show which Americans own how much of this giant sum.  We do.
Continue reading “Is America Really Richer?”