Migration, productivity, living standards, and all that
Migration is generally considered to be positive for productivity and living standards. Motivated workers usually younger than the average of the native workforce boost the labour supply, increase productivity and support demand in the economy. In a study published...
America’s continuing economic expansion and tightening labour market
The US economy continues to expand steadily. Unemployment continues to fall, and the number of jobs has increased: the unemployment rate has fallen to 4.3 per cent from 4.4 per cent. Strong employment growth The monthly employment report for July was stronger than...
The UK economy hits a soft patch, euro area recovers — no Brexit conclusions
Last week the IMF downgraded its 2017 GDP forecast for the UK from 2% to 1.7% at the same time as upgrading its euro area forecast to 1.9% from 1.7% previously. Upgrades to forecasts for Germany, France, Spain and even Italy contributed to the revision. A forecast of...
What is the American economy’s trend rate of growth, and how can it realistically be raised?
There is currently an interesting debate in the US about what the trend rate of growth is, and how it could be raised, alongside a broader anxiety about the relative performance of the US economy. The recovery in output from the Great Recession has been much slower...