The Regional Economist

In Fed We Trust: New Book Focuses on the Fed in the Eye of the Storm

Fri, 02 Oct 2009 24:00:00 CDT

Alton Comes to Grip with Industrial Decline

Fri, 02 Oct 2009 24:00:00 CDT

Housing's Great Fall: Putting Household Balance Sheets Together Again

Fri, 02 Oct 2009 24:00:00 CDT

The simplest way to avoid another devastating housing crash and foreclosure crisis probably is to reduce household borrowing and, then, to keep it low.

Increasing Political Freedom May Be Key To Reducing Threats

Fri, 02 Oct 2009 24:00:00 CDT

The root causes of terrorism might not be poverty and lack of education, as many believe. Rather, the lack of civil liberties, political rights and the rule of law might be more influential.

Is the Rate of Homeownership Nearing a Bottom?

Fri, 02 Oct 2009 24:00:00 CDT

Reader Exchange

Fri, 02 Oct 2009 24:00:00 CDT

Recession Takes Toll on Eighth District Tax Collections

Fri, 02 Oct 2009 24:00:00 CDT

Regulating Carbon Emissions: The Cap-and-Trade Program

Fri, 02 Oct 2009 24:00:00 CDT

The anti-pollution program in Congress contains desirable economic features. But a key component—an auction process covering all permits for carbon emissions—does not seem to be politically viable.

The "Man-Cession" of 2008-2009: It's Big, but It's Not Great

Fri, 02 Oct 2009 24:00:00 CDT

That men are losing jobs at a much faster rate than women during this recession shouldn't be a surprise. The pattern is typical. And it's not just the men in the hard hats who are out of a job—men in almost all categories of work are being affected disproportionately.

As in the Past, Reform Will Follow Crisis

Digging Into the Infrastructure Debate

Is the nation's infrastructure really in such bad shape? Should we be spending more on the Internet and less on interstates? And what of competing needs—health care, education, wars?

From Community College to a Bachelor's Degree and Beyond: How Smooth Is the Road?

Those who start out at a community college and go on to get a four-year or better degree usually face a rougher road than those who start out at a four-year college. The paycheck at the end of the road is often less for those in the former group.

No Ifs, Ands or Butts: Illinois Casinos Lost Revenue after Smoking Banned

Prime-Mortgage Problems Escalate

Reader Exchange

Resort Rejuvenates French Lick, Ind.

The Curious Case of the U.S. Monetary Base

Recent increases in the monetary base are far greater than any previously in American history, surely a "noble experiment" in policymaking. Whether these policies can succeed—and without accelerating inflation—remains to be seen.

The Storm Clouds Begin To Depart

Annual Revision of Metro Jobs Data Shows Little Change from Earlier Reports

Corporate Social Responsibility Can Be Profitable

Businesses have found that it can pay off to engage in social stewardship, such as donating to charity, protecting the environment and nurturing a diverse and safe workplace.

Fed's Bold Actions Harken Back to Volcker Era

Fort Knox Helps Protect Economy of Elizabethtown, Ky.

Nearing the Bottom, or Digging a Deeper Hole?

Reader Exchange

The Financial Crisis in S, M and L: Three Very Different Countries Respond Similarly

An examination of what Iceland, the United Kingdom and the United States went through last September and October during the financial crisis reveals some important differences and similarities.

This Is Not Your Father's Recession ... or Is It?

The current declines in employment and income are consistent with what happened in previous recessions going back to 1969. Unique this time are the major drop in home prices and the proactive response by policymakers.

A Winning Combination? Economic Theory Meets Sports

Satisfying a need to get out in the field, some economists are studying sports. Their topics have included racism in the NBA, coaches’ maximization of their chances of winning, and the direction that soccer players and goalies should move during penalty kicks.

Deficits, Debt and Looming Disaster: Reform of Entitlement Programs May Be the Only Hope

With government deficits and debt at record highs, the long-term fiscal outlook for the U.S. requires serious attention, most agree. The fix is most likely going to have to start with fundamental reforms of entitlement programs.

El Dorado Hopes The Promise Brings Back the Golden Days

Employment Growth Mixed Across Eighth District

If Fed Becomes Super Regulator, Politicians Would Be Its Kryptonite

If given broader regulatory authority, the Fed will probably face new challenges in executing its traditional responsibilities and in preserving its independence against political pressure.

Man the Lifeboats!

Reader Exchange

The Fed as Lender of Last Resort

Community Colleges: Not So Junior Anymore

Originally, their goal was to prepare students to transfer to a four-year college. Today, they also offer work force training, certification in professions, adult continuing education-and even bachelor's degrees.

Did Credit Scores Predict the Subprime Crisis?

One might expect to find a connection between borrowers' FICO scores and the incidence of default and foreclosure during the current crisis. The data don't show such a cause and effect, however.

District Tops U.S. in Growth of Exports to China

Missouri is leading the region's pack, with an annual rate of growth topping 31 percent.

Eighth District States Weather the Mortgage Foreclosure Storm

Health Care Industry Rejuvenates Paris, Tenn.

Reader Exchange

Threats to the Economy Don’t Let Up

U.S. Income Inequality: It's Not So Bad

Census data show that the income of the rich is growing faster than the income of the poor. But such common measures exaggerate the degree of income inequality. In addition, income inequality is the result of-and not a detriment to-a well-functioning economy.

Worry Less About Systemic Risk, More About Inflation

Eighth District Population Growth Follows National Pattern

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.

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

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.

Reader Exchange

St. Louis Fed’s Approach to Monetary Policy Won’t Change

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.

Triple Whammy Fuels Economic Doubts

Extra Credit: The Rise of Short-term Liabilities

Not only are more American families in debt, but the median value of the debt more than doubled between 1989 and 2004. Credit cards and payday loans are two of the favorite tools for digging the hole deeper.

Louisiana, Mo., Survives by Adapting to Change

Neighborhoods That Don't Work

Unemployment is becoming more concentrated. Neighborhoods that had high unemployment in 1980 had even higher unemployment 20 years later. What are the possible reasons—and solutions—for this trend?

Reader Exchange

Reflections of a Monetary Policymaker

Revisions in Jobs Data: A New Picture of Metro-Area Employment in the Eighth District

Skirting the Edge?

The Federal Reserve Seeks To Protect Consumers

The Federal Reserve plays a key role in protecting consumers when they seek financial services. That role revolves around four pillars: rulemaking, enforcement, community affairs and consumer education.

Which Came First–Democracy or Growth?

Most economists agree that economic freedom promotes growth, but fewer agree that more political freedom improves economic performance as well. Chile of the 1970s and 1980s and China today are just two autocracies with strong economies.

Bailing Out the Markets Is Not a Goal of Fed Policy

Clearing the Haze? New Evidence on the Economic Impact of Smoking Bans

When smoking bans were debated in the past, the economic costs were seldom considered. But that’s changing, as studies reveal the costs being paid by bars, restaurants and casinos, as well as by employees of these establishments.

District Fares Better Than Nation as Housing Market Crumbles

Reader Exchange

Splitsville: The Economics of Unilateral Divorce

New studies have looked at the impact of easier divorce on everything from women working outside the home to children’s education to spousal violence.

Stable Prices, Stable Economy: Keeping Inflation in Check Must Be No. 1 Goal of Monetary Policymakers

Conventional wisdom holds that if policymakers are too focused on controlling inflation, then employment, output growth and financial stability will suffer. But the conventional wisdom is wrong, according to the data.

Town and Gown: In This Southern Illinois Hub, They Are Now “Tied at the Hip”

Walking a Tightrope into 2008

Bird Flu Pandemic: History Warns of Economic Pain, Though Some Might Gain

If such a pandemic were to be anything like the Spanish Flu of the early 20th century, expect not only tens of millions of deaths worldwide but also a blow to the world economy in the hundreds of billions of dollars. See “Headlines from 1918,” too.

Employment Growth Slows in the Eighth District

Housing Woes Weigh Heavily on the Economy

Knock on Wood, Jasper, Ind., Economy Remains Strong

Nonprime Mortgage Woes—How We Got There, Where To Go Next

Trading Barbs: A Primer on the Globalization Debate

Support for free trade seems to be waning, even though history has shown that globalization has produced large benefits for most parts of the world. How far—if at all—should policymakers go to appease those who hold a different view?

U.S. Exporters: Rare but Beneficial

Even though the U.S. is one of the world’s leading exporters, few companies actually sell abroad. One reason may be that exporting requires a company to be highly productive.

As Boomers Slow Down, So Might the Economy

Baby boomers will start retiring in droves in January. Coupled with the slowdown in productivity and the near-zero saving rate, growth in GDP could fall to levels not seen in 25 years.

Community Profile: Conway, Ark., Makes Play for Economic Boom

Driving Home the Responsibilities of a Policymaker

Vanity Plates Take Message to the Streets.

Industrial Loan Companies Come Out of the Shadows

Despite being around for nearly a century, industrial banks have been in the spotlight only in the past couple of years. That's largely because of who wants to own them—big-box retailers like The Home Depot and Wal-Mart.

Population, Sprawl and Immigration Trends in Eighth District Metro Areas Vary Widely

The Economy Continues to Take a Punch

Why Do Gasoline Prices React to Things That Have Not Happened?

Some people complain they are being gouged at the pump, but raising prices now in anticipation of what might happen helps ensure an adequate gas supply.

Asian Nations Driving World Oil Prices

The rapid growth in China and India has led to an increase in demand for oil, which, in turn, has driven up prices. After adjusting for inflation, a barrel of oil today costs about what it did during the 1979 oil shock.

Banking Deregulation Helps Small Business Owners Stabilize Their Income

Once banking markets were opened up to geographic diversity and competition, more banks were in a better position to lend money to small businesses—even in tough times.

Decline in Labor Force Participation Could Lower Standard of Living

Housing Slump Could Lean Heavily on Economy

Just because there was a boom in the housing market doesn't mean there will be a bust. But if the decline in prices that has hit some markets spreads across the country, the overall economy could suffer on multiple levels.

Murray, Ky., Bucks Trends in Manufacturing

Revised Data Show Larger Job Gains for Eighth District Metro Area

Will the U.S. Economy Find Its Groove This Year?

Barnyard Boon or Bust? The National Animal Identification System (NAIS)

The goal of the National Animal Identification System is to trace the origin of a diseased animal within 48 hours. But would an optional, voluntary system accomplish this goal without unduly hurting small farmers?

Below-Trend Growth Is Predicted for Most of 2007

Industry Councils Bring Firsthand Insights to Our Regional Economic Outlook

Louisville's Job Growth Lags on Many Fronts

The Taking of Prosperity? Kelo vs. New London and the Economics of Eminent Domain

The forced sale of homes for private development usually results in a zero-sum gain and may actually hinder development in the area, economists have found.

There Are Two Sides to Every (Employment Redistribution) Story!

Tunica, Miss., Lays Big Bet on the Casino Industry

Working Hard or Hardly Working? The Evolution of Leisure in the United States

Although Americans appear to be spending less time on the job than they were a hundred years ago, there's some question as to whether they have more leisure time.

“Core” or “Total” Inflation—Which Is the Fed’s Focus?

Adding Up the Economic Effects of Immigration

The influx of low-skilled and undocumented workers raises concerns about the impact on low-skilled U.S.-born workers and on the tax burden for all those born in the United States.

Electricity: The Next Energy Jolt?

The next energy crisis may not involve oil or natural gas, but electricity. The amount available during peak periods of demand is shrinking, and the reliability of bulk transmission lines is being questioned.

Income Inequality: Time for Predatory Lending Laws?

States that have adopted laws against such lending had higher than average levels of income inequality over the past 10 years than did states that didn't pass such laws.

Life Sciences Help College Town of Columbia, Mo., Evolve

Slow and Steady in St. Louis

Soft or Hard Landing?

Uneven Employment Growth Reflects Differing Mixes of Jobs

As Household Asset Values Rise, Should We Still Worry about the Saving Rate?

Although some data show that household wealth is rising, we shouldn’t be complacent about the flip side of the coin—that personal saving is in a nosedive.

Dyersburg, Tenn., Hopes I-69 Is the Road to Prosperity

Inflation's Economic Cost: How Large? How Certain?

Central bankers believe that low inflation and long-term economic growth go hand in hand. The evidence about the costs of inflation, however, is not as clear-cut.

Professional and Business Services Bounce Back in Memphis

Slowdown in Housing Won’t Shut Down Economic Growth

Survey Says Families Are Digging Deeper into Debt

The Fed’s triennial Survey of Consumer Finances found that median household debt rose almost 34 percent between 2001 and 2004, while net worth rose just 1.5 percent.

U.S. Maneuvers through Choppy Waters

Uneven City Job Trends Weigh on Kentucky’s Recovery

Economy Overcomes Hurricanes, Rising Energy Prices

How Dangerous Is the U.S. Current Account Deficit?

Although this deficit has been rising steadily since the early 1990s, a “hard landing” for the U.S. economy is unlikely. One reason is that only in the United States can so many foreigners invest so much money and get such good returns.

Movin' On Up

More young people, poor people and minorities are buying homes these days, but not because of tax deductions or government affordable-housing programs.

River Keeps Jeffersonville, Ind., Economy Rolling

Rock Solid in Little Rock?

Social Changes Lead Married Women into Labor Force

The ranks of women in the workfoce jumped by more than 24 percentage points between 1955 and 1999. Credit labor-saving devices at home (such as the dishwasher), the birth-control pill and the preference by some men to marry a woman who works outside the home.

Three Metro Areas Outside St. Louis Outpace State of Missouri as a Whole

Wal-Mart Application Focuses Spotlight on Industrial Loan Companies

Colleges Need To Learn about Productivity

Despite Setbacks, the U.S. Economy Steams Forward

Effingham, Ill., Uses Tax Breaks To Bounce Back

Employment Trends in Nearby Metro Areas Take Different Paths

Job Cuts in Manufacturing, Transportation Slow Recovery

States Fight Predatory Lending in Different Ways

As the laws vary from state to state, so does their impact. In some states, the high-cost mortgage business appears to have shrunk. But in other states, the opposite has occurred.

Stop Paying More for Less: Ways to Boost Productivity in Higher Education

College tuition has increased dramatically over the past decade, yet few think the quality of graduates has kept up. Decentralizing the administration and privatizing such things as housing and food service would boost productivity, as would ditching tenure and improving teaching.

What's in a Name? Reconciling Conflicting Evidence on Ethnic Names

One study shows that Kenya and Hakim might have more trouble getting their résumés noticed than Allison and Brad do. But another study indicates that distinctively African-American names don’t lead to worse economic outcomes in adulthood.

Despite Flaws, CAFTA Is Step in Right Direction

District's Largest Urban Area Slowly Regains Jobs Lost during Recession

Ducks and Rice Are Staples in Stuttgart, Ark.

Fayetteville and Hot Springs Lead the Recovery in Employment

Official Dates for Business Cycles Don’t Capture All the Ups and Downs

The Door Is Open, but Banks Are Slow To Enter Insurance and Investment Arenas

Congress opened the door five years ago for banks to enter the insurance and investment arenas, but the expected rush has yet to occur. That’s probably fine with critics, who feared that the return of universal banks would bring back Depression-like instability.

The Economics of Charitable Giving: What Gives?

Americans are estimated to have raised their donations to charity three-fold over the past 40 years. What motivates them to give?

Up, Up and Away: Personal Bankruptcies Soar!

Over the past 24 years, the U.S. rate of personal bankruptcies jumped nearly 350 percent. The rate varies greatly among states. Tennessee’s rate last year—the highest in the nation—was more than 10 filings per 1,000 people, nearly four times the rate in Massachusetts.

A Patchwork Economy?

Cash-Out Refinancing: Check It Out Carefully

Lower interest rates can make mortgage refinancing a good idea, but borrowers need to pay attention to more than just the monthly payment. Cash-out refinancing is especially tricky because it entails taking on a larger mortgage. This can lead to a greater repayment burden in the future.

Do We Have a Saving Crisis?

Theoretically, the decline in saving jeopardizes our economy because savings are lent to businesses for investment. In reality, the U.S. economy is doing better than the economies of countries where saving is much higher. Can this continue?

Doing It By The Book—Oxford, Miss., Capitalizes on Its Literary Past and Present

Health-Care Industry Pulls Memphis Out of Job Slump

Latest Oil “Shock” Differs Significantly from Those of the ’70s

Neighboring Cities Show Job Trends That Are Far Apart

The Economics of Smoking Bans: Peering Through The Haze

Although such prohibitions are becoming more common, generalizations can’t be made about their impact because they still are too new and too few. Scrutiny of the ban in Maryville, Mo., shows that the issues remain hazy.

Basel II Will Trickle Down to Community Bankers, Consumers

The new banking accord could make survival for some regional and community banks more difficult. On the other hand, consumers could see lower mortgage rates.

Basel II—Good for Banks, Good for Financial Stability

Charging Onward—MasterCard, WingHaven Fuel Growth Spurt for O'Fallon, Mo.

Economy's Expansion Puts Down Roots

Employment Trends Vary in Three of Missouri's Metro Areas

Service Industries Keep Employment Steady in Arkansas’ Capital

So Much for That Merit Raise: The Link between Wages and Appearance

If you’ve long suspected that the boss rewards not just hard work but good looks, you’re right, based on research into the impact of beauty, weight and height on wages.

The Real Population Problem: Too Few Working, Too Many Retired

It’s not the total number of people that should be causing worry, but the number of retired people relative to those still working. Across the world, the ranks of retirees are swelling and the ranks of those working – and paying taxes to support retirees – are not keeping up.

Economists Expect Solid Economic Growth This Year

Frankfort, Ky., Capitalizes on History, Variety

Keep Your Résumé Current: The Causes Behind Declining Job Tenure

Workers are switching jobs more often than in the past. Among the reasons are changes in technology, changes in demographics and changes in such institutions as unions and international trade.

Volcker’s Handling of the Great Inflation Taught Us Much

Wage Gap Widens, Especially in Cities

Over the past 30 years, the gap between what workers at the high end of the scale earn compared with wages at the low end of the scale has widened dramatically. The divide is especially pronounced today in cities.

What Is Driving Oil Prices?

Besides supply and demand, speculation is drawing a lot of attention these days as a cause of higher oil prices.

"Offshoring" of Jobs Opens Doors to Other Opportunities

Bentonville, Ark., Is Sam's Town

Entrepreneurs in the U.S. Face Less Red Tape

For those starting a business in this country, government red tape is minimal compared with many other places around the globe.

Focusing on St. Louis Employment

Point and Click, or Mortar and Brick? A Look at Internet Banking in the Eighth District

Online banking in the Eighth District is analyzed to see how it affects market competitiveness and financial performance.

The Two Faces of Banking: Traditional Loans and Deposits vs. Complex Brokerage and Derivative Services

Banks that focus on traditional activities, such as loans and deposits, are losing ground to those offering new, complex services, such as securitizing consumer loans and brokering swap agreements.

Fear of Hell Might Fire Up the Economy

In those countries where a large percentage of the population believes in hell, there seem to be less corruption and a higher standard of living.

Light Rail: Boon or Boondoggle?

Proponents of such mass transit recite a litany of benefits, but the cost to taxpayers is high.

Productivity Is the Gift That Keeps On Giving

Springfield, Mo., Is a Boomtown Once Again

The Housing Giants in Plain View

These government-sponsored enterprises continue to make headlines because of their explosive growth and resulting heavyweight status within the nation's financial system.

Waiting on the Fed

A Jobless Recovery with More People Working?

One employment survey said 800,000 jobs were lost in the two years after the recession ended in November 2001. Another survey said 2 million more people were working. Can anyone account for this huge gap?

Miscommunication Shook Up Mortgage, Bond Markets

What the Fed said last year it could do if deflation surfaced was one thing. What the markets heard was another. The result was mania in the bond and mortgage markets.

Pension Reform Is Needed Now

The Party Heats Up

Tough Lesson: More Money Doesn’t Help Schools; Accountability Does

Well-Preserved Madison, Ind., Looks to Attract More than Just Tourists

Bank Consolidation: Regulators Always Have the Power to Pull the Plug

The banking industry has undergone significant consolidation since branching laws were relaxed in the 1990s. But federal regulators still analyze every proposed merger or acquisition to make sure it won't violate antitrust statutes.

Burger Survey Provides Taste of International Economics

An annual survey on the price of a hamburger in countries around the globe provides a surprisingly meaty lesson about relative currency valuations.

Check 21 Will Lead to Savings of Time, Money

Economy Finally Takes Off

Pine Bluff, Ark., Unleashes Its Arsenal

The Economy Gets Back on Track: but Once Again Leaves Many Workers Behind

After each of the past two recessions, the recovery has been lackluster, with little economic growth and job creation. Historically, the rebound has been much stronger. Is the economy changing fundamentally?

"Cedars" Deposits: Will They Fly?

Deposit-hungry community banks are turning to a new funding tool called the Certificate of Deposit Account Registry Service. The service says it can help smaller banks attract more jumbo deposits from local customers.

Credit Unions Make Friends—But Not with Bankers

Unable to slow the growth of credit unions by protesting their tax breaks and sponsor subsidies, banks are citing other reasons to bolster their case that the competition has an unfair edge.

Does Uncertainty about Oil Prices Slow Down the Economy?

It's not the latest jump in oil prices that takes a toll on the economy but the uncertainty over what will happen in the future. But getting a handle on such uncertainty is a difficult task.

Lessons from Japan

Recessions, Expansions and Black Employment

The Collierville, Tenn., Challenge—Can This Growing Memphis Suburb Balance Growth with Its Small-Town Identity?

Despite Possible Plant Closure, Paducah, Ky., Hopes for an Enriching Future

In the Rubble of Disasters, Politicians Find Economic Incentives

Natural disasters can be opportunities for politicians. In deciding who gets what aid, they weigh what they can get back in terms of political support, contributions and votes.

Navigating the Brave New World of Bank Liquidity

By traditional measures, liquidity risk for banks is higher today than 10 years ago. But new measures—necessitated by new funding sources—tell another story.

Putting War to the Cost/Benefit Test

Slow Recovery Remains Puzzling

What Should a Central Bank Look Like?

To figure out what a central bank should look like, consider that most have three features in common: independence, transparency and a goal of low and stable inflation.

Consumer Confidence Surveys: Do They Boost Forecasters' Confidence?

Economic forecasters rely on monthly consumer confidence surveys to help them determine the current and future states of the economy. But how reliable are these surveys?

Image Makeover—Starkville Shows There’s a Place for High Tech in Mississippi

Innovation: Is the Eighth District Catching Up with the Nation?

The degree of innovation in the Eighth District has lagged the rest of the nation over the past two decades. In one area, however, the District is beginning to catch up.

Marriage, Motherhood and Money: How Do Women’s Life Decisions Influence Their Wages?

Becoming a wife. Becoming a mother. Read how these critical life decisions affect the salary women take home.

The U.S. Economy: Between Iraq and a Hard Place

Tracking the U.S. Dollar

Big Government: The Comeback Kid?

In the cover story, find out why the federal government’s days of scaling back are over. Fueling the buildup are corporate accounting scandals, the war on terrorism and demands for a Medicare prescription drug program.

Breaking Out—Success in Marion, Ill., Not Confined to Prison

Monetary Policy: The Whole Country Gets the Same Treatment, but Results Vary

The target set by the FOMC for the federal funds rate applies to the entire country. But that single policy has a different impact on different parts of the country, depending on their concentration of interest-sensitive industries.

Recovery Has a Case of the Slows

Rules vs. Discretion: The Wrong Choice Could Open the Floodgates

Anyone who sets any kind of policy can appreciate the dilemma that faces those trying to prevent construction in floodplains: Is it better to stick to the rules—no matter how harsh—or to exercise discretion under certain circumstances?

The Fed Lends a Helping Hand—and Sometimes a Push

Anecdotes Help Fed to Steer the Economy

Formal data don’t tell policy-makers everything they need to know about the economy. The Federal Open Market Committee also pays attention to anecdotes gathered from the front lines of business.

Comparing Apples and Oranges: When Measuring Prices, It's Not Easy Dealing with Rapidly Evolving Products like Computers

Tracking prices over time is easy when the object in question doesn't change much, say, an orange. But the process is difficult when there are frequent changes in the quality of the item, say, an Apple computer. Hedonics provides the solution.

Deposit Insurance Reform: Is It Déjà Vu All Over Again?

In the cover story, find out why some bankers are encouraging Congress to raise the ceiling for insurance on deposits to $130,000 from $100,000 per account. Opponents point out that in the wake of the last increase, the S&L crisis occurred.

Hazelwood, Mo., Is a City At The Crossroads

Patterns in the District Labor Market

To Sustain Financial Stability

Economists Weigh All the Costs of Health Care

In evaluating health-care plans, economists look for the not-so-obvious costs, such as those related to adverse side effects, patients' lost productivity and even volunteers' time.

Historic Vincennes, Ind., Draws Strength from Within

Jumbo CDs Play Tiny Role in Policing Risky Banks ... So Far

Reforms enacted after the S&L crisis have yet to persuade holders of jumbo CDs to monitor their banks' risky practices.

Recovery Isn't As Easy As in the Past

The Stock Market: Beyond Risk Lies Uncertainty

In the cover story, stock market investors will find out why it's so important to distinguish between these two sides of randomness.

Untold Story of FOMC: Secrecy Is Exaggerated

Community Ties: Does "Relationship Lending" Protect Small Banks When the Local Economy Stumbles?

The cover story examines why small banks aren't usually thrown for a loop when the local economy has a rough ride.

Deflating Expectations About Falling Prices

Doing Business in Texarkana Sometimes Means Going Over the Line

For Love or Money: Why Married Men Make More

Whether it's because of employer bias or their own hard work, men who've married are paid more than those who've never said "I do."

Full Steam Ahead?

Government Budget Surpluses Head South: Will They Come Back?

Increased spending on the war, domestic security and Medicaid could slow the rebound in government budgets.

Checks Lose Market Share to Electronic Payments—and the Economy Gains

Different Generations Generate Economy in Kirksville, Mo.

Predicting Inflation: Food For Thought

Because food prices are no longer volatile, it makes little sense to exclude them anymore from calculations to determine core inflation.

Road to Recovery Longer Than Average?

The Federal Reserve's Response to the Sept. 11 Attacks

To protect the economy in the short run, the Fed acted quickly on five fronts to provide emergency liquidity. But in the long run, no major change in monetary policy should be needed because the fundamentals of the economy remain solid.

The Futures Market as Forecasting Tool: An Imperfect Crystal Ball

The futures market is not a perfect crystal ball. In some cases, it accurately forecasts what spot prices will be in the future. But not always.

A Third Pillar of Bank Supervision Examinations and Capital Requirements Already Seek to Control Risk. Can Markets Support This Effort?

Mon, 01 Oct 2001 24:00:00 CDT

Examinations and capital requirements are the current pillars of bank supervision. Some people now want to draw on the markets for further assistance in controlling risk.

Despite Dark Events, Prospects Remain Bright

Mon, 01 Oct 2001 24:00:00 CDT

Despite Red Flags, Inflation under Control

Mon, 01 Oct 2001 24:00:00 CDT

In Hopkinsville, Ky., Farmers' Involvement Puts Them A Cut Above The Rest

Mon, 01 Oct 2001 24:00:00 CDT

Low Unemployment: Old Dogs or New Tricks?

Mon, 01 Oct 2001 24:00:00 CDT

Technology usually gets the credit for the unusually low unemployment of the not-too-distant past. But baby boomers, with all their years' experience, also played a role.

Suburban Expansion: District Growth Rate Tops National Average, Census Shows

Mon, 01 Oct 2001 24:00:00 CDT

Census figures show that suburbs in the Eighth District are growing faster than they are for the nation as a whole.

Blackouts in California Shouldn't Cause Panic Here

Sun, 01 Jul 2001 24:00:00 CDT

It's A Wait and See Economy Out There

Sun, 01 Jul 2001 24:00:00 CDT

The Changing Face of the Eighth District

Sun, 01 Jul 2001 24:00:00 CDT

The census shows we lag the country in population growth and in racial diversity.

The Microchip Flexes Its Muscle: Can It Compete with History's Best?

Sun, 01 Jul 2001 24:00:00 CDT

The development of the microchip sparked another industrial revolution. But will this revolution yield the long-term surge in productivity that the First and Second industrial revolutions produced?

To Bear or Not to Bear

Sun, 01 Jul 2001 24:00:00 CDT

Weighing the costs vs. the benefits of having children may seem like a cold-blooded exercise. Yet such an analysis can help us understand not only such private decisions but public policies, too.

Tupelo, Miss., Fights to Keep Furniture King

Sun, 01 Jul 2001 24:00:00 CDT

How Healthy is the Banking System? Funneling Financial Data into Failure Probabilities

Sun, 01 Apr 2001 24:00:00 CDT

The diagnosis on banks is comforting, despite a few weak spots here and there and an economy that's slowing down.

How Much of the Gender Wage Gap Is Due to Discrimination?

Sun, 01 Apr 2001 24:00:00 CDT

Not much, says economist Howard Wall. Plenty, says Alyson Reed of the National Committee On Pay Equity.

Recession Fears May Be Overstated

Sun, 01 Apr 2001 24:00:00 CDT

Should Cities Pay for Sports Facilities?

Sun, 01 Apr 2001 24:00:00 CDT

Taxpayers can get more bang for their buck on other projects, but saying "no" to the home team is hard to do.

Storming Forward After Terrifying Tornado, Fort Smith, Ark., Continues to Rebuild

Sun, 01 Apr 2001 24:00:00 CDT

Will the U.S. Economy Gain A Second Wind?

Sun, 01 Apr 2001 24:00:00 CDT

281 Million and Counting

Mon, 01 Jan 2001 24:00:00 CDT

Action Jackson—Tennessee Town Seeks to Continue 10-Year Roll

Mon, 01 Jan 2001 24:00:00 CDT

Bricks and Mortar, Wood and Shingles: Are Real Estate Markets Still Booming in the Eighth District?

Mon, 01 Jan 2001 24:00:00 CDT

Comparing the recent growth in the Eighth District's real estate markets to the previous year's record-breaking pace can make things look a little sluggish. The reality is anything but.

Divestiture: A Prescription for Healthy Competition

Mon, 01 Jan 2001 24:00:00 CDT

Our anti-trust laws dictate that bank mergers be rejected if they will substantially lessen competition in their markets. Yet bigger bank mergers are approved every year. What's going on? One word: divestiture.

Predicting the Fed

Mon, 01 Jan 2001 24:00:00 CDT

Rising Oil Prices and Economic Turmoil: Must They Always Go Hand in Hand?

Mon, 01 Jan 2001 24:00:00 CDT

When oil prices jump, people get jumpy--especially when the Fed is bumping up interest rate targets at the same time. Why? Because these two events have accompanied virtually every recession since World War II. At least until now.