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Housing Affordability, Interest Rates, and Inflation

principal and interest payments at prevailing mortgage rates on a constant-quality new single-family home (assuming a thirty-year, 80 percent loan-to-value [LTV] ratio loan) and median family income. This ratio has…

Housing Bubble, Revisited

…it’s the quality-adjusted payment; the actual payment is some larger amount). Adding $10,000 to the principal to incorporate the higher commuting time implies an increased monthly payment of about $62,…

Sulli v. Daily Howler on the Flat Tax

…would be honest. It would eliminate the principal source of political corruption in Washington. It would be fair. Millions of people would be off the federal income tax rolls. There…

Reason #5 to Vote for Kerry: Terrorism

…entities that pose the principal danger to the safety of US citizens. Bush’s decision to invade Iraq has reduced the resources available to address non-state terrorists such as Al Qaeda….

The Nobel Prize in Economics

This year’s winners are Kydland and Prescott. Atrios and Stirling Newberry provide nice summaries for non-economists of some of their principal insights. Let me just add two quick thoughts. First,…

Bush’s "Visionary" Speech

…I have been particularly interested in his proposals for domestic policy, since the US is currently facing a number of serious economic problems that need to be addressed, such as:…

Bush: Flip to Flop in Under Ten Days

…the polls, embrace the panel’s principal recommendations: WASHINGTON (CBS.MW) — President Bush said Monday he wants to overhaul the structure of the U.S. intelligence community by creating a position for…

…impact on our national security: By the early hours of the morning of August 20, President Clinton and all his principal advisers had agreed to strike Bin Ladin camps in…

The Monster Turns on its Creators France and Germany (especially Germany) were among the principal architects of the EU’s “Monster” — the Stability and Growth Pact, an agreement written in…

…of the slack after the bubble burst. This asset price inflation with corresponding price disinflation has made many households feel wealthy and consume more. The only problem is that asset…