“If the rest of the world says, ‘We don’t want to finance your current account deficit and budget deficit,’ then something has to give,” Menzie Chin says. A weaker dollar would likely help narrow the trade deficit, though its effects wouldn’t show up for a couple of years. However, it’s unlikely to weaken much given that the US is outperforming most other economies, as well as the US’s safe-haven status and the fact that the dollar is the predominant world reserve currency.
A groundbreaking atmospheric scientist, a brilliant U.S. diplomat and an esteemed businessman and philanthropist will be awarded honorary doctoral degrees at the University of Wisconsin–Madison in May.
Professor Kenneth West in the Wall Street Journal: Fed’s crisis-era, bond-buying plan was largely ineffective, economists say
The paper presented at the conference was written by David Greenlaw of Morgan Stanley , James Hamilton of the University of California San Diego, Ethan Harris of Bank of America Merrill Lynch and Kenneth West of the University of Wisconsin. It argues most of what people now believe of the asset purchases is likely wrong.
Professor Kenneth West in the New York Times: Fed should lean on rate cuts, not QE, in next recession
While the Fed has not set an end point, the paper’s authors - David Greenlaw of Morgan Stanley, Ethan Harris of Bank of America Merrill Lynch, James Hamilton of University of California at San Diego, and Kenneth West of University of Wisconsin - said it should not go too far and consider larger and looser run-off caps.
Fangdi Pan (B.A.'13, Economics and International Studies) is one of 142 students in the just-announced third class of Schwarzman Scholars. Winners receive full tuition for a one-year master’s degree program at Tsinghua University in Beijing.
Simon Potter (M.S.’87, PhD’90, Economics) helps keep the economy ticking. As the head of the Markets Group at the Federal Reserve Bank of New York, he’s in charge of carrying out interest rate changes on behalf of the U.S. central bank. Read about what it’s like to be in the hot seat when Fed leaders decide to raise rates and what he’s learned in nearly two decades working at the central bank.
Michael Reader (B.S.'86, Economics) is someone who is making Wisconsin work. His company, PrecisionPlus in Elkhorn, Wisconsin, manufactures precision parts, including pins, screws, shafts, valve components, spools, gears, and gear blanks. There is little margin for error in this type of manufacturing, and the business partners with some of the best technology companies on the planet to produce some of the most precisely made components you’ll find anywhere.
However, Reader’s educational path was less than precise.