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For the week of March 23, 2015
COMMENTARY – by Michael J. Hicks, Ph.D.
The Federal Reserve relies on economic models to keep markets in balance.
There is much speculation over the timing of the Federal Reserve's decision to raise interest rates. One common approach by Fed watchers is to parse every word and statement to divine the moment rates will rise. Another is to understand the economic models the Fed is using to guide policy. As an economist, I obviously prefer the latter approach, and so here's my explanation of the models.
Read the full text: The Rate Hike Calculus
Last week's commentary: The Borg-Warner Natatorium; Repurposing Hoosier Factories
Ever wonder about how a new business could affect the local economy? Or how a big move will change the amount of money in your wallet? These questions can be answered through the calculators found on cberdata.org!
DID YOU KNOW? – by Dagney Faulk, PhD
CBER recently released a report, "A Cost-Benefit Analysis of Pseudoephedrine Drug Policy in Indiana" by Srikant Devaraj, Michael Hicks and Karthik Balaji, which estimates the impact of requiring a prescription to purchase products containing pseudoephedrine on medical expenses, state sales tax revenue and lost productivity of workers.
Impacts of switching from over-the-counter to prescription only purchases of medications containing pseudoephedrine include a $5.8 million dollar increase in respiratory drug payments through Medicaid, up to $1.3 million in lost sales tax revenue, up to $61 million in out-of-pocket expenses for households to obtain a prescription, and up to $27.3 million in lost worker productivity.
ECONOMIC INDICATORS – View all economic indicators (CBER Data Center).
TUESDAY: U.S. Consumer Price Index, Monthly
WEDNESDAY: U.S. Durable Good Orders, Monthly
|Center for Business and Economic Research
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