Why is it hard for a firm to maintain market power over a long run? Why did the unemployment rate stay high for a long time after the recession of 2009? Why is it that real, long-term interest rates tend to go up before the stock market crashes?
Why does government spending increase during a recession? Why does economic growth matter? Why economy of India (Gross Domestic Product) is growing so fast? Why is the Fed so important in our economy? Explain why some economists are against a target of zero inflation. ...
Barro argues the rate of unemployment in this Great Jobs Recession is comparable to what it was in the 1981-82 recession, but the rate of long-term unemployed is nowhere as high. He concludes this is because unemployment benefits didn’t last nearly as long in 1981 and 82 as it they do...
Here’s the problem with the structural argument. If 2/3 of the recession was due to real factors, then monetary factors would have caused at worst a very small increase in unemployment, maybe 1.7% points of the roughly 5 percentage point increase. That would be milder that any post-WWII...
A holistic understanding of the federal funds rate involves knowing the Federal Reserve's dual mandate. Its monetary policy is geared toward two things. The first is maintaining maximum employment, also known as full employment. The Federal Reserve doesn't aim to zero out unemployment. The objecti...
Being absent from work — a category that includes people on vacation or on sick leave, for example — doesn't boost the unemployment rate. A temporary layoff, or furlough, however, does increase it. watch now VIDEO03:36 Economist highlights job growth inequalities in August employment report...
However, economists do expect unemployment to rise and inflation to continue cooling. A weaker-than-expected consumer price index report or jobs report could send mortgage rates lower in the short term. The economy shows deeper signs of weakness. The probability of a recession in th...
down to pre-pandemic levels. Those who lose their jobs are finding it increasingly difficult to secure new ones. While an influx of people into the labour market has contributed to a rising unemployment rate over the past 12 months, close to half of the increase has been due to job loss....
The Fed adjusts the federal funds rate in response to economic conditions: Lowering the rate: When the Fed wants to stimulate economic growth or prevent unemployment from rising, it lowers the target federal funds rate. This makes borrowing cheaper throughout the economy, encouraging spending and ...
While appealing, this is an ad-hoc explanation ofthe stagflation of the 1970swhich does not explain later periods that showed a simultaneous rise in prices and unemployment. Blame the Loss of the Gold Standard Other theories point to monetary factors that may also play a role in stagflation. ...