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A Framework That Provides Clarity

During periods of “low visibility,” confusion reigns: for every indication of one trend, there seems to be a countertrend. The key is to glean from the collective wisdom of reliable leading indicators a clear signal that the economy is headed for a turn.

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Dec 22 2012

Can the Fed Piece the Economy Back Together?

The Fed recently revised both its methods and “guideposts” for implementing accommodative policy.

While some have argued that the weakness in the job market and the overall economy can be countered with central bank intervention, others think that weak growth in the economy, including employment, is more structural in nature and cannot be changed by quantitative easing alone.

ECRI’s latest report investigates both the structural and cyclical situation in the U.S. economy, showing if all the Fed’s helicopters and all the Fed’s men can put the economy back together again.

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The Yo-Yo Years

ECRI March 1, 2012

The convergence of two cyclical patterns virtually dictates an era of more frequent recessions in developed economies. As a result, and because of the Bullwhip Effect, growth in developing economies is going to be jerked around more than people think, making for a good deal of cyclical economic contagion. In other words, we are now in the yo-yo years.