A heated debate has emerged over the structural nature of the shocks embedded in DSGE models. In particular, Chari, Kehoe and McGrattan (2009) have argued that estimated wage mark-up shocks, which affect the bargaining power of unions, are too large to have a credible structural interpretation...
Shocks could also stem from an economic crisis abroad, although few are large enough to truly dent U.S. growth. CLICK HERE TO GET THE FOX BUSINESS APP Arrives Weekly Get Our Newsletter Get a brief on the top business stories of the week, plus CEO interviews, market updates, tech and mon...
"Africa has natural resources, a young population, and a labor force that can be educated. Africa could be the investment destination globally if these constraints are addressed," said Costantinos Bt. Costantinos, who has served as an economic advisor to the AU and the United Nations (UN) ...
Now with the new year dawning, will China sustain its post-pandemic rebound into 2022? What are the economic priorities this year? How will China navigate its journey toward socialist modernization? Here are some key trends to watch. PRIORITIZING STABILITY ...
"Negative consumption is concerning because consumer spending is backbone of U.S. economy," Pollack said. "And it's not just that spending fell. Sentiment has fallen, household budgets are squeezed and consumers are more vulnerable to shocks, which has heightened recession fears." ...
We see growth in Sub-Saharan Africa to hold up at 3.5 per cent this year, as global shocks (such as slowing growth in major economies) are typically felt later in the region and with a lag. The main concern for Africa is that a slowdown in developed markets may trigger risk aversion,...
The African economy is still facing difficulties in the new year, but regional economic recovery is expected to pick up speed in 2023. Digital technology and green economy, among others, are expected to be new growth points for regional economy. ...
The most obvious causes are shocks like natural disaster, war, and geopolitical factors. An earthquake, for example, can destroy the infrastructure needed to produce important commodities such as oil. That forces the supply side of the economy to charge more for products that use oil, discouraging...
Poverty is a difficult cycle to break and can pass from one generation to the next. It is often determined by socioeconomic status, ethnicity, gender, and geography. Many people are born into poverty and have little hope of overcoming it. Others may fall into poverty because of negative econ...
The Fed normally employs quantitative easing after other monetary policy tools have been used but something more is needed to boost slow lending and economic activity. For instance, QE may be used when interest rates are already low but economic output is still less than what the Fed believes ...