http://www.frbsf.org/publications/economics/letter/ Short essays on current topics by Research economists. /publications/economics/letter/2012/el2012-04.html The severe global economic downturn and the large stimulus programs that governments in many countries adopted in response have generated a resurgence in research on the effects of fiscal policy. One key lesson emerging from this research is that there is no single fiscal multiplier that sums up the economic impact of fiscal policy. Rather, the impact varies widely depending on the specific fiscal policies put into effect and the overall economic environment. 2012-02-06 00:00:00.0 FRBSF <em>Economic Letter</em> Mon, 6 February 2012 07:00:00 PST Daniel J. Wilson /publications/economics/letter/2012/el2012-04.html /publications/economics/letter/2012/el2012-03.html During the recent recession, unemployment duration reached levels well above those of past downturns. Duration has continued to rise during the uneven economic recovery that began in mid-2009. Elevated duration reflects such factors as changes in survey measurement, the demographic characteristics of the unemployed, and the availability of extended unemployment benefits. But the key explanation is the severe and persistent weakness in aggregate demand for labor. 2012-01-30 00:00:00.0 FRBSF <em>Economic Letter</em> Mon, 30 January 2012 07:00:00 PST Rob Valletta and Katherine Kuang /publications/economics/letter/2012/el2012-03.html /publications/economics/letter/2012/el2012-02.html During the financial crisis of 2007–09, the Federal Reserve took extraordinary steps to stem financial panic. Since then, the Fed has also taken extraordinary action to boost economic growth. The Fed continues to do its level best to achieve its congressionally mandated goals of maximum employment and stable prices. The following is adapted from a speech by the president and CEO of the Federal Reserve Bank of San Francisco at The Columbian’s Economic Forecast Breakfast January 10, 2012, in Vancouver, Washington. 2012-01-17 00:00:00.0 FRBSF <em>Economic Letter</em> Tue, 17 January 2012 07:00:00 PST John C. Williams /publications/economics/letter/2012/el2012-02.html /publications/economics/letter/2012/el2012-01.html Since 2001, countries around the world have been working on crafting a new global pact to liberalize trade. Despite the difficulties of completing such a multilateral agreement, it remains a worthwhile goal for two reasons. First, a global pact offers cost and efficiency benefits that can't be achieved under the kinds of agreements among smaller groups of countries that have proliferated in recent years. Second, a global agreement presents a unique opportunity to optimize the use of the world's resources, thereby improving well-being around the world. 2012-01-09 00:00:00.0 FRBSF <em>Economic Letter</em> Mon, 09 January 2012 07:00:00 PST Carolyn L. Evans /publications/economics/letter/2012/el2012-01.html /publications/economics/letter/2011/el2011-38.html Real estate prices in a local market can be driven by an identifiable group of purchasers. In Hawaii, residents of both the U.S. mainland and Japan have been significant purchasers of homes. An analysis suggests that house prices in Hawaii were driven primarily by purchasers from the U.S. mainland for most of the 1975-2008 period. But, during Japan's "bubble economy" in the late 1980s and immediately thereafter, house prices in Hawaii were driven primarily by demand from Japan. 2011-12-19 00:00:00.0 FRBSF <em>Economic Letter</em> Mon, 19 December 2011 07:00:00 PST John Krainer, James A. Wilcox /publications/economics/letter/2011/el2011-38.html