Archive for the ‘Economic Growth’ Category

What’s holding back US GDP? (hint: it’s not the Fed rate hike)

December 21st, 2015

The US economy is posting solid numbers in important places: GDP is consistently growing around a trend of slightly north of 2 percent, we’re adding around 200,000 jobs per month, which is more than enough to put downward pressure on the remaining slack in the job market. It’s true that wage growth and especially inflation… Read more

Benefits of full emp: wages pressures and maybe even a full-employment-productivity multiplier

December 18th, 2015

Over at WaPo. The wage part of the story I show, lifted from a piece in WSJ about Lincoln, NE, where unemployment is 2.3%, is a familiar one, though the magnitude of the growth rate is pretty striking. But the productivity part is, of course, trickier (“of course” because I don’t think economists really know… Read more