Benefits of Immigration and Migration
The benefits of migration are significant for both the sending and receiving countries, according to a new NBER paper (via Blattman, who has a link to an ungated version). From the abstract:
We find that immigration increases employment, with no evidence of crowding-out of natives, and that investment responds rapidly and vigorously. The inflow of immigrants does not seem to reduce capital intensity nor total factor productivity in the short-run or in the long run. These results imply that immigration increases the total GDP of the receiving country in the short-run one-for-one, without affecting average wages and average income per person.
Popularity: 46% [?]
One Thing at a Time: Stress Test Results Postponed Until After Secondary Offerings
In my least favorite sign of spring the bicycle riding commuters have begun their annual return to the roads of Cambridge. While I am all for riding a bike to and fro (good for the environment, good for health yada, yada, yada..) what you have to understand is that the streets of Cambridge are not built for cars AND bikes. There is just no room. So now once again in addition to dodging taxis that are driven by crazy people and avoiding being crashed into by cell phone obsessed fools I must now also avoid collecting any bikers that are taking up road residence where this is no room. Love it!
Deflation Biased Statistics Are Driving the FED Insane
Ben “Deflation Will Not Happen Here” Bernanke must be wringing his hands at the incoming data he sees. While the FED tries every known move to “raise inflation expectations” the data that keeps coming out continues to work against them.
The Fed, after long years of massaging inflation component information (hedonic adjustments, using owners equivalent rent) to make inflation seem much lower that what it is, now is pressed to find ways to make inflation seem even a remote possibility. It is a hard job.
With unemployment rising, deflationary forces have the upper hand. Add to this the decline in consumer borrowing (which should result in less consumption) and the picture is indeed grim. A while back the powers that be decided to change the housing component of the inflation equation. Instead of home prices as the standard gauge, the move was made to use “owner’s equivalent rents”. This silly substitute uses what a homeowner would expect to reasonably pay in rent for their residence. casting aside the problems associated with asking somebody what their home would rent for, rental prices are factored in as well.
Popularity: 52% [?]
New Reports of Wal-Mart Russia
Reports of out Russia suggest Wal-Mart Stores Inc. (WMT) may be in negotiations to buy a controlling stake in one of the country’s leading “hypermarket” big box retailers. An article in the Kommersant newspaper said the ownership stake in Lenta could approach 51%. This follows similar reports in July 2008.
The move would be in keeping with Wal-Mart’s recent international history as the majority of its expansion outside the U.S. has been through initial partial ownership stakes rather than green-field development, according to UBS analyst Neil Currie.
Popularity: 45% [?]
