Can state and local governments in the US run fiscal deficits?

July 7, 2024 No Comments

A: There is nothing about the nature of state and local governments that prevents them from running deficits in the same manner as the U.S. federal government. A fiscal deficit is brought about whenever government revenue fails to meet government expenditures – an accounting reality

Can the Efficient Market Hypothesis explain economic bubbles?

June 30, 2024 No Comments

A: The efficient market hypothesis (EMH) cannot explain economic bubbles because, strictly speaking, the EMH would argue that economic bubbles don’t really exist. The hypothesis’s reliance on assumptions about information and pricing are fundamentally at odds with the mispricing that drives economic bubbles. Economic bubbles

Can the Efficient Market Hypothesis explain economic bubbles?

July 7, 2024 No Comments

Can the Efficient Market Hypothesis explain economic bubbles?

July 7, 2024 No Comments

Consumer Confidence Vs. Consumer Sentiment

June 30, 2024 No Comments

A: Consumer confidence and consumer sentiment are very similar in that they both refer to the degree of confidence consumers feel about the overall economy and their personal financial state. Consumer confidence or sentiment helps predict the level of spending that consumers will engage in.

Consumer Confidence Vs. Consumer Sentiment

July 7, 2024 No Comments

Consumer Confidence Vs. Consumer Sentiment

July 7, 2024 No Comments

Did the repeal of the Glass-Steagall Act contribute to the 2008 financial crisis?

June 30, 2024 No Comments

A: The repeal of the Glass-Steagall Act was at most a minor contributor to the financial crisis. At the heart of the 2008 crisis was nearly $5 trillion worth of basically worthless mortgage loans, among other factors. Although the repeal allowed for much bigger banks,

Did the repeal of the Glass-Steagall Act contribute to the 2008 financial crisis?

July 7, 2024 No Comments

Did the repeal of the Glass-Steagall Act contribute to the 2008 financial crisis?

July 7, 2024 No Comments

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