Minneapolis Fed economists Art Rolnick and Rob Grunewald advocate an investment in early childhood development programs. These programs are rarely viewed within the context of economic development, but the authors think that is a mistake, that such an investment would result in high economic returns.
This study seeks to reconcile the apparent conflict between statistics indicating stagnation in standards of living and statistics indicating robust growth. The issue addressed here is whether income growth over the past three decades bypassed middle America and accrued almost entirely to the rich. The study concludes that—contrary to many reports—middle America did quite well.
Compare the length and depth of the current recession with the previous 10 recessions (post-World War II).
Are development incentives good or bad? Proponents say incentives create a business-friendly, entrepreneurial climate; promote local job opportunities and worker training; enhance private sector productivity and competitiveness. Opponents charge that these giveaways divert government money from supporting traditional public goods like education, frequently cost far more than any realized benefits and misallocate resources.
U.S. banks are consolidating in record numbers and the size and complexity of our largest banks are growing. While this consolidation and growth may not, in and of itself, be bad, one thing is clear: The loss of just one of these too big to fail
(TBTF) banks poses an even greater systemic risk than before. Yet, too much depositor protection can result in such banks taking too much risk.
Do We Know Enough About Economics?
The December 1998 issue of The Region was devoted to the topic of economic literacy. “The Economic Literacy Project: Seeking a Blueprint for America,” symposium, held in Minneapolis May 1999, featured over 60 specially invited representatives of academia, business, labor, K-12 education, consumers, government and finance institutions.
An investigation into credit availability in the Minneapolis-St. Paul Hmong community. The Minneapolis Fed, in conjunction with the Wilder Research Center in St. Paul, conducted a survey of Twin City Hmong business owners and homeowners. The purpose of the survey was to understand how the Hmong community in Minneapolis and St. Paul have obtained credit and other financing for business and household uses.