Relevant and even prescient commentary on news, politics and the economy.

The Fed Goes to Five

The FOMC (the interest rate-setting committee at the Fed) raised the Federal Funds rate to 5.0% today. Here’s the important bit of the accompanying statement: Economic growth has been quite strong so far this year. The Committee sees growth as likely to moderate to a more sustainable pace, partly reflecting a gradual cooling of the […]

Long-term Perspective on House Prices

In the new issue of The Economists’ Voice, Robert Shiller has a piece on house prices: “Long-Term Perspectives on the Current Boom in Home Prices.” Here’s the picture that tells a thousand words: Despite massive population growth over the periods shown in all three countries, there’s very little upward trend in home prices. Fluctuations in […]