Tag: economy

Last week, Federal Reserve Chair Janet Yellen sounded a cautious note to House and Senate committees, saying that financial conditions in the U. S. have recently become less supportive of growth.

(more…)




Super Bowl weekend is a super data collecting weekend for Olin’s Business of Sports director Patrick Rishe. Rishe tells Bloomberg news about the numbers he collects and crunches to research the economic impact on the city where the game is held. This year, San Francisco is the focus of Rishe’s research. Watch video by clicking here.

 

 

 




It was the financial move the entire world was waiting for: Today, Sept. 17, the Federal Reserve opted to hold short-term interest rates steady near zero, continuing a seven-year status quo.

The federal funds rate — the rate at which banks charge one another for overnight loans — began its decline in September 2007 and bottomed out at zero during the financial crisis in 2008.

While the economy has rebounded, the recent market upheaval in China, and the resulting ripple effects felt globally, raised concerns. The Fed’s decision to hold rates steady buys more time to gauge global markets’ strength, and possible volatility, should a rate hike be put into place in the near future.

“While the economy is running at ‘full employment’ now, some of the recent economic data has been a bit weaker than expected,” said Jennifer Dlugosz, PhD, assistant professor of finance at Olin Business School at Washington University in St. Louis.

“The uptick in financial market volatility and concerns about global growth probably didn’t help either,” she said. “This gives policymakers a chance to try to get a better read on which direction we’re headed in before next month’s meeting.”

Prof. Dlugosz previously served as an economist at the Board of Governors of the Federal Reserve System in Washington, D.C.

Guest blogger: Erika Ebsworth-Goold, WUSTL Newsroom




It’s the multibillion dollar question: What drives economic growth? Diverse sources of capital and a thriving global financial system are key, according to a new report from the U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (CCMC).

Released last week and authored by Anjan Thakor, PhD, the John E. Simon Professor of Finance at Washington University in St. Louis, the report, “International Financial Markets: A Diverse System is the Key to Commerce,” provides a broad overview of the global financial system and how it supports economic growth, facilitates global trade and creates opportunities for companies, entrepreneurs and individuals.

“The global financial system is a vast combination of traded securities, markets and contracts,” said Thakor, who also serves as PhD program director at Washington University’s Olin Business School.

Thakor_2_dec2010

Prof. Thakor

“This study describes and examines this system from the perspective of the role the global financial system plays in facilitating economic growth and meeting the needs of individuals and companies. The main conclusions are that a robust global financial system helps economic growth, creates more opportunities for individuals and firms, and that it is highly interconnected.” Anjan Thakor

Along with those opportunities come challenges for regulators of institutions and markets in terms of striking a balance between the need for transparency in this system and the need to enable the system to facilitate economic growth, according to Thakor.

“Understanding how this system works, and how to support it, is critical as regulators on every continent look to modernize or alter current regulatory structures,” he added.

chamber report To accompany the report, the CCMC also has published an interactive infographic that shows the daily challenges faced by business owners around the world, and the ways main street businesses utilize the financial industry to overcome them.

The full report is available online here.

About the CCMC
Since its inception in 2007, the CCMC has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.

About the U.S. Chamber of Commerce
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors and regions, as well as state and local chambers and industry associations.

News Release by Julie Hail Flory, WUSTL Public Affairs




The Brookings Hutchins Center on Fiscal and Monetary Policy has just released an interactive graphic titled “Janet Yellen’s Dashboard”. The dashboard created by Brookings  presents data on inflation, jobs, growth, and markets.

Once a quarter, Federal Reserve Chair Janet Yellen and her colleagues look at their dashboard to see where the economy has been and make projections for where they think it’s going. The dashboard shows a dozen of the most important measures of the economy’s vigor as the Fed tries to steer it toward its statutory goals of maximum  sustainable employment and price stability. The interactive below shows you what the Fed Chair sees as she makes predictions for unemployment, inflation, growth and interest rates.”(The Brookings Institution, 2014). 

Visit the Brookings webpage to interact with “Janet Yellen’s Dashboard” »

wesseld_1x1Want to read the expert’s opinion?  Read what David Wessel, Director of the Hutchins Center on Fiscal and Monetary Policy has to say »

Image: Illustration by Lauren Nassef.