Latvia remains determined to join the Euro in 2014, Karlsson writes, despite some countries aiming to exit the Euro.
The US savings rate fell from 6.4 percent to 2.4 percent in January, and it will take a few months to see if it recovers to normal levels.
Increasing the minimum wage would cause some workers to lose jobs and others to get higher pay. But the effects would not be large.
People respond to incentives, Karlsson writes. If they didn't, we wouldn't have seen companies make large advance payments of salaries and dividends because they expected a big increase in tax rates.
The US dollar fell against most other currencies in 2012, with only the Indian rupee, the Brazilian real and the Japanese yen falling in value against the US dollar.
A $1 trillion coin could be used by the Obama administration to finance spending even if the debt limit isn't raised, Karlsson writes.
France's court rules against the new 75 percent tax rate on incomes above €1 million, but not because of the rate, only because of the way it's applied. French Socialists can easily meet the objections with a new onerous tax on the rich.
It is long overdue for Americans to decide whether they want big government or not, Karlsson writes, instead of continuing the current policy of small government when it comes to taxation and big government when it comes to spending.
The cause of Japan's deflation isn't monetary, it's demographic. Inflationary policy won't work in the long term.
Ireland has in the recent year come to diverge in a positive way from Portugal, Spain, Italy and Greece, Karlsson writes.
Karlsson explores the economics of switching from a one-dollar note to a one-dollar coin. From a Swedish perspective, Karlsson writes, changing to a coin would seem natural.
British budget statistics show no trace of big spending cuts and austerity measures in Britain, Karlsson writes.
Recent EU data shows great divergences in Europe between different countries in economic growth, Karlsson writes.
The most recent election illustrates a greater shift to the left in California, Karlsson writes.
Latvia's strong economic recovery continues, with GDP increasing 1.7 percent in the third quarter. And Latvia did it by reducing government and maintaining a fixed exchange rate.
While Republican presidential nominee Mitt Romney is unsatisfactory in many ways he is a somewhat lesser evil compared to President Barack Obama, Karlsson writes.
Germany's overall trade surplus continued to increase this year. But in trading with other eurozone countries, its €300 million surplus turned into a €1.1 billion deficit in August.This means that Germany is in fact helping to reduce the deficits of crisis-struck countries like Spain and Italy.
The British economy is experiencing its worst spell since the 1930s, but unemployment has been relatively moderate. The cause? Low productivity.
Karlsson responds to readers' comments on his translation of monthly changes to annualized rates in his previous post on inflation.
Producer prices rose 1.7 percent in August, but the Fed went ahead with QE3. Is the US economy about to experience some serious inflation?