If QE2 Was Price-Level Targeting, It is Starting to Work

Has QE2 worked? Some say yes, some say no. The answer depends on what you wanted it to do.
If you wanted a quick revival of the housing market, a boost to GDP growth, and rapid job creation, it's easy to say QE2 has failed. None of those indicators look good. On the other hand, if you thought the purpose of QE2 was to save the country from deflation, then it looks better, especially if you are a fan of price level targeting.

Follow this link to read the full post on Ed Dolan's Econ Blog at Economonitor.com

One Year Later, How Much Has China's Yuan Appreciated?

A year ago this week China announced a major change in its exchange rate policy. After holding the yuan-dollar exchange rate fixed for almost two years during the global crisis, the country's central bank, the People's Bank of China (PBoC) announced that the yuan would once again be allowed to float, albeit in a highly controlled way. The yuan began appreciating against the dollar immediately, touching off intense speculation about how far it would be allowed to move. A year later, what has happened?

Follow this link to read the full post on Ed Dolan's Econ Blog at Economonitor.com

Data for the Classroom: US Unemployment for May 2011

Latest data from the Bureau of Labor Statistics shows a very weak job US job market in May, 2011.

Payroll employment increased for the 8th straight month of job growth in May, but the pace of job growth slowed to a weak 54,000, the slowest September 2010. An increase of 83,000 in private nonfarm jobs was offset by a decrease of 23,000 in state and local government jobs. A separate survey of households, which includes farm jobs and self-employment, showed an increase of 105,000 jobs.