April 21, 2011

Richmond Fed Publication Looks at What Drives Economic Thought

Richmond, Va.

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The recent financial crisis caught many economists by surprise. Were they studying the wrong things? If so, how did it come to be that way — and will the financial crisis bring about a fundamental change in economic research? The cover story in the latest issue of Region Focus puts these questions into historical context.

Also in this issue:

• Flexible Workforce. Many economists see temporary employment as a buffer during recessions and a harbinger of full-time hiring during recoveries. Will that hold true in this recovery?
• Benefits and Burdens of Expanded Military Bases. Several military bases in the Fifth District are expanding as a result of the Base Realignment and Closure Plan, bringing both benefits and costs to the communities surrounding those facilities.
• Stigma and the Discount Window. Are banks reluctant to borrow from the Fed's discount window because they believe the market will perceive them as financially distressed — even if they aren't?
• Interview. Joel Slemrod of the University of Michigan discusses U.S. and international fiscal policies.

Region Focus covers the economy and business activities of the Fed's Fifth District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia.

For free copies of Region Focus, contact the Bank's Research Publications division at 800.322.0565. The articles are also available online at http://www.richmondfed.org/publications.

The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.

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