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The Regional Economist

July 2008

Ethanol: Economic Gain or Drain?

Corn-based ethanol can make a dent in demand for oil, but at what price? Food costs go up. Environmental damage worsens. If oil prices fall, ethanol production will probably collapse—as it did 20 years ago.

The Mortgage Crisis: Let Markets Work, But Compensate the Truly Needy

As painful as it may be, letting the housing and mortgage markets sort out these problems on their own would be best for the economy in the long run. Large-scale government interventions are not necessarily the best policy responses, although those made truly needy by this crisis need to be helped.

Need and the Need for Favors Motivate Foreign Aid Decisions

Bermuda gets $46,000 a year, while Iraq receives $2.3 billion. What motivates donors to give aid to other countries? Need—and the need for favors.

President's Message: St. Louis Fed’s Approach to Monetary Policy Won’t Change

Community Profile: Greenwood, Miss., Kitchen Company Keeps Town's Economy Cooking

National Overview: Triple Whammy Fuels Economic Doubts

District Overview: Eighth District Population Growth Follows National Pattern

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