Fed Holds Rates Steady - Again (01/31)
"The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.” Review the FOMC statement. Examine historical changes of the target federal funds rate (Changes) and discuss why investors may have welcomed this news of no change by driving blue-chips stocks into record territory (Reaction). Define a Goldilocks economy.

Economy Posts Surprising Growth (01/31)
"Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.5 percent in the fourth quarter of 2006, according to advance estimates released by the Bureau of Economic Analysis.” Review the advance 4 th Quarter 2006 estimates. Examine the recent US GDP growth trend and assess the overall 2006 economic performance (Trend). Discuss why we may have a Goldilocks economy (Analysis). Should the Federal Reserve should raise, hold or lower its short term interest rate – later today?

Can Markets Save The Planet (01/26)
"As the earth warms up due to greenhouse gas emissions, and as time to tackle the global menace runs out, governments and businesses are increasingly embracing markets to bring flexible, entrepreneurial mitigation.” Discuss how “cap-and-trade” markets worked to reduce sulphur dioxide, a cause of acid rain, in the US (Carbon Trade). Examine how private companies TerraPass or DriveNeutral like are utilizing market activities to permanently reduce the cap on carbon emission (Analysis).

Chairman Bernanke Outlines Fiscal Challenges (01/18)
"I am pleased to be here to offer my views on the federal budget and related issues… Unfortunately, we are experiencing what seems likely to be the calm before the storm.” Discuss why an aging U.S. population could lead to serious economic harm (Analysis). Review the 2006 Social Security Trustees Report highlights and discover when the Social Security Trust Funds are expected to be “exhausted” (Report). Examine the basic facts of Social Security and assess its overall importance on the economy (Facts). Finally, explore what actions are considered by the Bush Administration to address this serious fiscal challenge (Whitehouse).

Money Stock Increased In The Second Half (01/18)
"Measures of the money stock and its components have been revised to incorporate the results of the annual review of seasonal factors and a new quarterly benchmark… For both M1 and M2, the revisions decreased growth in the first half of 2006 and increased it in the second half.” Review how money stocks or supplies are measured in the economy (Measures). Assess the recent U.S. trend in money supply (Trend) and discuss why money supply matters particularly in determining price levels or inflation in the economy (Analysis). Finally, examine how Second Life – a virtual web-based world - adjusts its supply of money or the LindeX to manage its relative exchange value to the U.S. dollar (LindeX).

House Passes Minimum Wage Increase (01/11)
"The House of Representatives passed the Fair Minimum Wage Act of 2007 by a wide margin on Wednesday afternoon. The bill raises the minimum wage from $5.15 per hour to $7.25 per hour in three increments over." Discuss how the increase in minimum wage may affect over 5 million Americans who are currently earning the minimum wage (Video). What may be potential effects on teen or low skilled employment if the real minimum wage is raised (Data)? Review what was learned from California’s experience in 1990s (Analysis). Examine why hundreds of economists are lobbying to raising the Minimum Wage (Lobbying).

Job Growth Solid (01/05)
"Chicago Federal Reserve President Michael Moskow on Friday said monthly jobs growth, recently averaging about 160,000 per month, was solid - given current evolutionary trends in the overall U.S. labor market.” Discuss how a falling labor market participation rate may affect the overall potential economic growth of the U.S. economy in the coming years (Participation). Examine the overall employment condition of the economy and discuss if a threat of “wage-push” inflation is real (Analysis).

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