Second Quarter, Volume 2, Number 2

Federal Reserve Bank of Atlanta
EconSouth

In This Issue

STAFF

Pierce Nelson
Editorial Director

Lynn Foley
Managing Editor

Michael Chriszt
Contributing Editor

Jean Tate
Lee Underwood
Staff Writers

Harriette D. Grissom
Stephen Kay
Elizabeth McQuerry
Contributing Writers

Carole Starkey
Peter Hamilton
Designers

EDITORIAL COMMITTEE

Bobbie H. McCrackin
Vice President and
Public Affairs Officer

B. Frank King
   Vice President and
   Associate Director
   of Research

Thomas J. Cunningham
   Vice President
   Research Department
   Regional Section

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ISSN 0899-6571

photograph of car courtesy of Panoz Auto Development

Volume 2, Number 2, Second Quarter 2000
		CURRENT ISSUE Fed’s Regional Structure Provides Unique Insight into the Economy

		COVER STORY A Wealth Effect Against a backdrop of soaring consumer spending, there has recently been a great deal of attention focused on the wealth effect. But does this economic phenomenon really have a significant impact on current spending by consumers, and should policymakers be concerned with increases in demand over supply brought about by this increased spending?

		FEATURES Higher Education Translates Into Big Business Thoughts of university towns remind many people of the carefree days of college and big games on Saturdays. But, as this article points out, universities are more than just ivory towers. In fact, universities provide a significant economic boost to their home cities, including jobs, community investments and spending by students and faculty.
		Mercosur: Back on Track? While Mercosur has experienced successes as a trading bloc in South America, its long-term sustainability was called into question recently as squabbles developed between the principal countries. Today, however, with improving economies and an emphasis on resolving disagreements, Mercosur appears to be headed in the right direction.

		DEPARTMENTS Research Notes & News Dollar Index The State of the States Southeastern Economic Indicators Southeastern Manufacturing Survey