Weekly Economic Update: November 21 – November 25, 2016

November 21, 2016

CHART OF THE WEEK

Japan has been stuck in a “New Normal” of dismal economic growth since 1991. Keynesian economists’ claims that higher government spending would stimulate growth did not translate into reality. Despite increased deficit spending over the last quarter century (measured by the deficit-to-GDP ratio), its growth rate remains relatively flat.

LAST WEEK

News & Commentary Weekly Highlights:

Reuters: U.S. dollar, global stocks climb as Yellen signals rate hike coming (Thursday)
CNBC: Yellen: I'm not stepping down until my term is done (Thursday)
Wall Street Journal: Reversing Rule by Regulation (Thursday)
Bloomberg: Obama Said to Block Selling New Drilling Rights in U.S. Arctic (Wednesday)
Washington Examiner: ColoradoCare collapse and the lessons on Obamacare (Sunday)

Top Economic Indicator Highlights:

Consumer Price Index (October 2016, percentage change from last year)
- CPI: October: 1.6%, September: 1.5%, August: 1.1%
- Core CPI (excludes food and energy prices): October: 2.1%, September: 2.2%, August: 2.3%
- Noteworthy: The CPI was driven upward by rising energy prices. Food prices remained unchanged. Upward pressure on the CPI and core CPI was attributed to price increases in housing, motor vehicle insurance, tobacco, alcoholic beverages, apparel, household furnishings, new vehicles, and education. Downward pressure on prices came from goods and services related to recreation, personal care, used cars and trucks, airline fares, and communications.