Whether the US labor market is tight or still has considerable slack is one of the most important economic puzzles right now. For instance, it determines whether the Fed should tighten further, or not, and this is likely to have a considerable impact on investor returns. We discuss some curious reasons behind the decline in […]
Entries Tagged as 'Economy'
July 12th, 2017 · No Comments
June 29th, 2017 · Comments Off on The IMF Blasts The U.S.
The IMF has become pretty critical of the US economic model, arguing it isn’t addressing rising inequality, stagnant wages, declining participation and social mobility and high poverty levels. While this critique is by no means exclusive of the present government, the IMF does warn that many proposals are liable to make these things worse. The […]
June 26th, 2017 · Comments Off on What’s Behind Declining Economic Dynamism?
Several measures like new company formation show a worrying decline in US economic dynamism. Demographics and changes in retail and house ownership explain part of this. Regulation and increasing economic concentration are also to blame. Source: What’s Behind Declining Economic Dynamism? | Seeking Alpha
June 22nd, 2017 · Comments Off on The Wrong Kind of Entrepreneurs Flourish in America – Bloomberg
Because it’s just a transfer from one person to another, rent doesn’t necessarily make an economy less efficient — it’s just often unfair. But Robert Litan and Ian Hathaway, writing in Harvard Business Review, have a more dire hypothesis. They surmised that many American entrepreneurs are no longer looking for ways to produce more useful […]
June 1st, 2017 · Comments Off on PIMCO: 5 key policy areas will test markets over the next 5 years
Pimco analysts Richard Clarida, Andrew Balls, and Daniel Ivascyn cite “insecure stability” as a key factor that will affect policy decisions around the world. “Over our five-year secular horizon we believe that the global economy will be ‘driving without a spare tire’ as the Fed raises rates and shrinks its balance sheet,” write the Pimco […]
May 6th, 2017 · Comments Off on Wall Street Vs. Main Street
The uproar of financial analysts over a wage hike at American Airlines is really illustrative of what has gone wrong with the economy. The details of this case are particularly stunning. But it’s only the logical outcome of how companies have been hardwired the last 4-5 decades, and the negative consequences for the economy are […]
April 6th, 2017 · Comments Off on A Curious Economic Riddle
From most of its economic data post financial crisis one would be inclined to think Belgium is a peripheral Southern European eurozone economy. The Dutch economy on the other hand is one of the most competitive in the world. Yet for most of the post-financial crisis period, the Belgium economy performed considerably better on growth, […]
March 15th, 2017 · Comments Off on The Hurdles To Higher Economic Growth
Stocks are pricing in a considerable amount of higher economic growth. However, there are a number of barriers that make it difficult to meaningfully achieve higher economic growth in the US. We go through some of these, most notably the labor market and the risks of higher inflation. The Hurdles To Higher Economic Growth | […]
March 15th, 2017 · Comments Off on Turning The U.S. Into Germany
The US experienced something of a populist revolution, people are unhappy with the economy, among other things. While Bernie Sanders wanted to change the US into Denmark, it’s less clear what economic model Trump admires. From his trade adviser Peter Navarro we gather that it could be Germany. Can the US be turned into Germany? […]