America / Debt / Economy / Fiscal Cliff / Fiscal policy / Politics / Tariffs / Taxes / Trade / U.S. Domestic Policy

Recession Risk in 2025: A Weighted Logit Model with Policy Insights

An overheating economy, high policy uncertainty, and declining consumer confidence pose recession risks of 53 percent as of April 2025. This paper employs a weighted logit model to aid policymakers in early intervention. Key indicators include consumer expenditure, yield curve, disposable income, and economic policy uncertainty, enhancing prediction accuracy in recession modeling. Continue reading →

A Drop in Consumer Sentiment: Economic Consequences and Policy Impacts
America / Economy / Politics / Tariffs / U.S. Domestic Policy

A Drop in Consumer Sentiment: Economic Consequences and Policy Impacts

Executive Summary The Council of Economic Advisers (CEA) Chair Stephen Miran stated on March 25th he does not believe there is a strong relationship between consumer sentiment and consumer spending in recent years.  Miran says this after a 9.76 percent decrease in consumer sentiment from February to March, marking the largest drop since January 2021, … Continue reading →

The Twin Deficit Hypothesis: An Analysis of the U.S.
Debt / Economy / Fiscal policy / Trade

The Twin Deficit Hypothesis: An Analysis of the U.S.

Executive Summary The relationship between fiscal deficits and trade balance in the United States is complex, and the twin deficit hypothesis (TDH) and Ricardian equivalence hypothesis (REH) suggests two differing opinions on the relationship.  The TDH postulates a positive connection between fiscal deficits and trade balance (net exports) while the REH argues there is no … Continue reading →

America / Economy / Fiscal policy / Politics / Presidency

President Biden and the State of Inflation

Executive Summary  Last week, President Biden outlined his plan to counter inflation as the rate rises to around 7%  The President placed the blame of inflation on rising prices in a myriad of sectors including motor vehicles, prescription drugs, energy, and childcare  His solutions include programs to cut costs as well as protect wages by … Continue reading →