Consistently selling more at each of its 1, 250 stores has fed revenue growth as much as opening new outlets.
Several factors have fed this growth, apart from the general demographic trend in favour of the southern and western states.
Things start to look better in 2010, where the Fed expects growth to range between 2.3% and 3.2%, with the jobless rate between 6.5% and 7.3%.
If the level of student debt continues to grow at its current rate, it could become a significant economic drag, as the younger generations delay purchases that would have otherwise fed economic growth.
FORBES: 5 Reasons the Student Loan Crisis is Nothing Like the Mortgage Crisis
In fingering GDP as a target, monetarists pick a rate at which this Keynesian measure should grow at, and then they call for money growth by the Fed in order to reach the growth rate.
FORBES: The Comical, Central Planning Fantasy That Is 'Market' Monetarism
We think the Fed is underestimating growth and inflation and the market is underestimating the coming rate hikes.
Remaining consistent with this principle, Brian argues that when the Fed Funds rate (the rate set by the Fed) is lower than the nominal growth rate, the Fed is inflationary, and when the Fed Funds rate is higher than the nominal rate, the Fed is deflationary.
Mr. Bernanke said he expects growth to pick-up, but says that if the Fed is wrong in its growth assumptions the FOMC has a variety of tools to help spur activity in an effort to boost employment.
"Given this backdrop, the Fed is likely to sound more upbeat on growth prospects than its April statement, " Maki said, speculating that the Fed may say that the economy looks on track to return to growth over the next few months.
By adjusting the growth rate of the monetary base, the Fed could raise and lower NGDP growth.
FORBES: The Stunning Admission Of One Of Stimulus' Chief Architects
Given that the Fed has an announced inflation target of 2%, and the normal real growth rate of the economy is 3%, the Fed is widely believed to target for an NGDP growth rate of 5%.
FORBES: This Economic Recovery Is Surely Different: It's FUBAR*
So while growth in the Fed's monetary base is overrated when it comes to currency values and inflation (base growth was the same in the '70s as it was in the '80s), the failure of the Nixon Treasury to clearly state its commitment to the Bretton Woods gold standard led to a falling unit of account.
Beckworth and Ponnuru joined Romer in calling for the Fed to accelerate the growth of NGDP.
FORBES: The Stunning Admission Of One Of Stimulus' Chief Architects
And late last month the Fed cut its economic growth forecasts for the U.S. by almost one-quarter.
On that basis, people might think that the main responsibility of Alan Greenspan, today's Fed chairman, is growth.
More worrying, however, is that competitors are piling on just as the consumer spending that fed Apple's growth may be slackening.
When velocity is stable, the Fed should keep money growth steady.
But the failure of both civilian and military rule to provide decent education, health care or robust levels of economic growth has fed frustration among the young.
To prop up the feeble growth, Fed officials in December said they expected to keep short-term rates near zero until the unemployment rate falls to 6.5% or lower.
The snapshot of activity in each Fed region showed positive growth in 10 of the central bank's 12 districts, helping extend gains driven earlier by encouraging news on manufacturing, productivity and jobs.
The Fed will blame the weak growth environment, and the European Central Bank will blame southern Europe.
FORBES: Ron Paul's Fed Talk Gets Some Talking Monetary Policy Change
Yet most business people (and the Fed) assume that economic growth will recover to its old rates.
"We're still seeing modest U.S. economic growth and a Fed that's got the printing presses going, " said Mr. Nolte.
"With the economy in a persistent state of below-trend growth, the Fed has cover" to cut interest rates, DeKaser says.
Since then, Congress hasn't joined the Fed in acting to stimulate growth.
Yet the Fed remains concerned about sluggish growth and the weak labor market and is committed to maintaining rates close to zero.
Meanwhile, if Fed policy does lead to growth in nominal income, it will be because inflation will start to rear its ugly head, not because printing money will spur production.
FORBES: Bernanke Administers Another Cruel Dose Of Financial Morphine With QE3
应用推荐