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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What is “core inflation,” and why do economists use it instead of overall or general inflation to track changes in the overall price level?
Dr. Econ discusses the Consumer Price Index (CPI) and what it comprises. Also examined is price fluctuation, and the volatility of food and energy prices.
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I find definitions of the federal funds rate stating that it can be both above and below the discount rate. Which is correct?
Dr. Econ discusses the federal funds rate as a tool of monetary policy, and how the fed funds market works.
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How would a change in inflationary expectations affect nominal interest rates and the yield curve?
Dr. Econ explains how inflationary expectations typically arequickly-although not necessarily fully-incorporated into the nominalinterest rates observed in financial markets, and are important factorsin determining market or nominal interest rates and shifts in yieldcurves.
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What is a yield curve, and how do you read them? How has the yield curve moved over the past 25 years?
Dr. Econ explains how yield curves track the relationship between interest rates and the maturity of U.S. Treasury securities at a given time. He will compare several yield curves and see what information they might provide economists.
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Why does the Federal Reserve consider nonfarm payroll employment to be an important economic indicator?
Dr. Econ discusses various sets of data used in examining employment, how they differ and how they influence monetary policy.
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What type of fiscal policy is the United States following in 2004? How does fiscal policy impact the economy?
Dr. Econ compares and contrasts monetary and fiscal policy, then discusses surpluses versus deficits, and their effects on the economy.
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How much currency is circulating in the economy, and how much of it is counterfeit? Is currency included in the money supply statistics?
Dr. Econ describes how currency is included in measures of the money supply. He also discusses the impact of currency held overseas.
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Companies are beginning to compete for workers by increasing wages. Is the Federal Reserve concerned that these wage increases will result in higher prices throughout the economy? If so, what could the Federal Reserve do to counteract this trend?
Dr. Econ examines the relationship of inflation, wages, productivity, and the economy, and how monetary policy can influence each.
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What is the importance of developing job skills?
Dr. Econ examines the value of education and how workplace competition affects and reshapes the economy.
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In times of financial stress, what typically happens to the difference between interest rates on corporate bonds and U.S. Treasury bonds?
Dr. Econ explains how bonds work, then proceeds to a comparison of corporate and U.S. Treasury bonds, showing how they react to risk.