Dr. Econ
Dr. Econ answers many questions with a focus on monetary policy and Federal Reserve related issues. The Doctor does not do homework, give financial advice or provide research support.
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Are 401k and IRA contributions included in the national savings rate, and if so, how is this calculated?
Dr. Econ explains how the national savings rate is figured, and discusses recent trends in national savings.
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Who are the largest holders of U.S. public debt?
Dr. Econ explains who holds U.S. public debt.
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What is the prime rate, and who borrows at that interest rate?
Dr. Econ defines the prime rate and discusses commercial and consumer loans. Also discussed is the relationship between the prime rate and the fed funds rate.
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Why is there such a time lapse getting the latest report on Gross Domestic Product (GDP)? In May 2005, we are just getting the preliminary GDP report for the quarter that ended in March 2005.
Dr. Econ defines the Gross Domestic Product (GDP) and explains the complicated steps necessary for its calculation. He also examines the trade-off between timeliness and accuracy, and the need for advance, preliminary and final estimates.
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What is neutral monetary policy?
Dr. Econ discusses monetary policy, and how it is used to stimulate and restrain the economy. Also discussed is the effect of the fed funds rate on other interest rates.
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Are credit unions regulated or supervised by the Federal Reserve System?
Dr. Econ describes the differences between a bank and a credit union, and how each is regulated.
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How does the Fed determine interest rates to control the money supply?
Dr. Econ examines a common misconception about how the Fed conducts monetary policy using the money supply. He also looks at the relationship between the money and the economy.
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Please explain how financial markets may affect economic performance.
Dr. Econ defines financial markets and explains why financial institutions and markets are important to economic growth and stability.
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Why do we need a central bank like the Fed when the laws of supply and demand will keep everything working perfectly?
Dr. Econ discusses the important roles played by Federal Reserve System in the U.S. economy, some of which are not always visible to the public, though they directly and indirectly affect participants in many financial transactions.
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How does the Federal Reserve define “loans and leases,” and how do they relate to “commercial and industrial loans”?
Dr. Econ explains how loans and leases are defined and where to find information on them. He also discusses the importance of commercial and industrial loans to banking institutions and the economy.