The Bowtie Economist's Daily Dose of 70-Word Wisdom

By not reducing the supply of oil in the face of falling demand, Saudi Arabia has caused the price of oil to plummet. That has caused households to increase their real consumption of gasoline by 4%, boosted purchases of light…

The Taylor Rule, a formula proposed by Stanford Professor John Taylor, tells the Fed how to set short-term interest rates. They are to be determined based on three variables: the gap between the actual inflation rate and the desired inflation…

Despite a generally strengthening economy, the combination of surprisingly cold weather in the Northeast and parts of the Midwest, declining capital expenditures (due primarily to falling oil prices) and weak exports (due a strengthening dollar) will reduce Q1 GDP growth…

The Friday File: The US cattle herd (including beef and dairy cattle) increased from 89 million in 2013, its lowest level since 1951, to 89.8 million in 2014. And the number of heifers being added to the beef-cattle breeding herd…

Minutes from the last Fed meeting were released yesterday and the Fed is covering the bases. While some want to raise rates in June, most don’t as they see more downside than upside risk, including weakening exports and a worsening…

Despite a generally strengthening economy, the combination of surprisingly cold weather in the Northeast and parts of the Midwest and declining capital expenditures (due primarily to falling oil prices and weak exports due a strengthening dollar) will reduce Q1 GDP…

Despite sharp rhetoric to the contrary, the GOP will nevertheless fund the Department of Homeland Security after 2/27/15 and will raise the debt ceiling when it becomes necessary later this year because doing otherwise will make them look profoundly stupid.…

The Friday File: After peaking at 19.6 billion catalogues mailed in the US in 2007, (that’s 65 catalogues per/person and 163/household) the number of catalogues shipped rapidly fell to 11.8 billion in 2012, but rose slightly to 11.9 billion in…