The yen touched the lowest level in a week against the dollar after the Bank of Japan maintained unprecedented monetary stimulus as the U.S. Federal Reserve moved toward raising borrowing costs for the first time since 2006.
Our casual evidence indicates that government spending boosts gross domestic product during recessions. But we don’t really have a satisfying, formal, modern, rigorous, academic macroeconomic model that explains this fact.
The dollar got its first “snack” of volatility with the just-released revision to Q3 GDP in the world’s largest economy. The report came out far better than expected, with Q3 growth revised up to 3.9% annualized