Comerica Bank Economy Projections

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Recommended: monetary policy and its effects on the economy.

Dye graphs a figure showing the fiscal imbalance of the federal government shown below found within this presentation (Dye, 2014).

In 2010 the percentage of GDP being federal receipts was about 15%. This percentage has shown a dramatic spike to 17% within the last 3 years. The graph that Dye shares shows that this level will begin to flatten out and slowly rise to 19% by 2035. This is something that is positive because it shows that the government not planning on spending more than they have been in the past as quickly as history has shown. It reflects the government having a more balanced use of their spending as a percentage of GDP (Dye, 2014). The government could be purchasing an array of things within local, state or federal levels. Purchases include paying government employees and buying goods for public works (Mankiw, 2012). In regards to the whole presentation that Dye gave, this figure shows good forecasts because it shows growth of spending at a level that is respectable. This shows that the government may not have to borrow as much money because it is not planning on spending as dramatically and quickly as observed before. Keeping government borrowing down while still having government purchases is healthy for the economy.
JOHNSON’S PRESENTATION SUMMARY
Johnson presented the Quarterly Investment commentary for Comerica. The first section of this presentation covered the global economic outlook. Johnson shows that the global economy has good looking forecasts for 2014 and 2015 showing economic growth for many different power houses of the global economy using real GDP calculations with the table below as used within Johnson’s presentation.

The US experienced a 1.9% Real GDP growth for the year of 2013. Real GDP g...

... middle of paper ...

...roducts are getting lower and inflation rates are increasing, the effects on society is somewhat offset.

References
Dye, R. (2014). The end of economic history (as we know it). The Comerica Economic Outlook.
Retrieved from: http://www.mkintel.org/wp-content/uploads/2012/02/Dr-Robert-Dye-Senior-Vice-President-and-Chief-Economist-Comerica-Bank-State-of-the-US-Economy-and-Outlook-2014.pdf
Johnson, D. (2014). Quarterly investment commentary. Comerica The Road Ahead. Retrieved from: http://www.comerica.com/wealth-management/Documents/Wealth%20Weekly%20Updates/2014/The_Road_Ahead.pdf
Mankiw, G. (2012) Principles of Macroeconomics. Mason, OH: South-Western Cengage
Learning. ISBN-13: 9780538453066
Sanabria, D. (2014). March consumer prices, retail sales. Comerica Economic Weekly. Retrieved from: http://blog.comerica.com/2014/04/15/march-consumer-prices-retail-sales/

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