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More than Two Decades of Macroeconomic History Through the Lens of Four Key Components of Aggregate Demand

It is remarkable the extent to which you can tell the story of the U.S. macroeconomy over the past twenty-five years through the reactions of four components of aggregate demand to policies and shocks:

  1. The dot-com boom unleashed by the Clinton deficit-reduction program and high-tech innovation.
  2. The dot-com bust.
  3. The housing boom.
  4. The successful rebalancing of aggregate demand—housing sits down, while exports and business investment stand up as money flows are successfully redirected.
  5. The Fed well behind the financial-stability curve: the financial crisis and the collapse.
  6. Inadequate recovery: The Geithner Treasury and the Obama White House's failure to do anything to promote a recovery of residential construction.
  7. Inadequate recovery: Republican (and Obama) fiscal austerity.
  8. Inadequate recovery: Bernanke's highly premature taper tantrum.
  9. The Trump rebound.

 

Dot-Com Boom:

FRED Graph FRED St Louis Fed

 

Dot-Com Bust:

FRED Graph FRED St Louis Fed

 

Housing Boom:

FRED Graph FRED St Louis Fed

 

Rebalancing Near Full Employment:

FRED Graph FRED St Louis Fed

 

Financial Crisis and Crash:

FRED Graph FRED St Louis Fed

 

Inadequate Recovery: Construction Stagnation:

FRED Graph FRED St Louis Fed

 

Inadequate Recovery: Fiscal Austerity:

FRED Graph FRED St Louis Fed

 

Inadequate Recovery: Bernanke's Taper Tantrum

FRED Graph FRED St Louis Fed

 

Trump Rebound

FRED Graph FRED St Louis Fed

 


FRED Graph FRED St Louis Fed


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