This issue, like the ones of the past year, has pieces on topics stemming from the pandemic and its aftermath, though a number of articles address different subjects.
There have been outspoken concerns by figures such as Lawrence Summers that the recently enacted American Rescue Plan has created a substantive risk of inflation taking off. Professor Ray Fair uses his well-known model to examine the specific size of the risk. Fair finds that inflation is quite likely to increase in the near term, no matter what actions the Federal Reserve might take. Indeed, he sees a nearly one-third chance that the inflation measure he focuses on (an index of prices charged by business--not the CPI or PCE) will be above 6% in 2022.
Recent decades have seen numbers of hurricanes and other major storms devastate parts of the US. Jeffrey Fisher and Sara Rutledge's article examines the impact of these storms on commercial real estate values, using detailed individual-site data. They find it takes roughly 5 year's following a major storm for returns on investment in these properties to be equal to those made in other regions.
Immigration is another hot-button issue. It is often noted than immigrants are, on average, more entrepreneurial than native-born US residents. Nabamita Dutta, Saibal Kar, and Russell Sobel propose an intriguing explanation, for which they...