Will the Resilient Consumer Continue to Prevail?

Congress and the Federal Reserve were able to successfully support “state and local governments, small and medium-sized businesses, and large employers” during a massive demand shock induced by COVID shut downs.* These efforts were made possible through the passing of the CARES Act, which extended unemployment benefits and provided businesses and households with sufficient cash to withstand the shut downs. Additionally, the Federal Reserve restored market functioning by lowering the Federal Funds rate to its lower bound, purchasing massive amounts of bonds, and by initiating a series of lending facilities with the help…

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Brexit and the Rise and Fall of the British Pound

The aftermath of the 2008 global financial crisis, as well as the uncertainty surrounding Brexit’s impact, resulted in several episodes in which the British pound sterling (GBP) plummeted to appalling lows (See Graph 1 below). Following the 2008 global financial crisis, the Bank of England (BOE) and the European Central Bank (ECB) ensued the actions of the United States Federal Reserve in stimulating the economy by initiating Quantitative Easing. QE was implemented after lowering their base interest rates proved insufficient. QE strived to stimulate aggregate demand by participating in three…

Wage Distribution in the English Premier League

Over the last few years, modern professional soccer has been dominated by those teams that have the bigger wage bills. This is especially true in the English Premier League, the top flight soccer league in England. With higher wage bills, teams are able to acquire players that demand higher pay. Those players that demand higher pay are typically the best players in the country, thus creating an advantage for teams with bigger wage budgets, simply because smaller teams cannot meet the high pay demands of world class players. As a result, teams with…

Enrique Gudino De Grote

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