Some countries’ business cycles are in sync with the world’s, while other countries’ cycles follow the ups and downs just of their neighbors’. This regional connection is even more prevalent if a region is defined not by geography but by common cultures and institutions.
In the past, the study of international trade often focused on differences in labor, land and capital, as well as the distance between trading partners. But economists are increasingly looking at the role played by institutions, specifically those that enforce contracts and curb corruption.
The decision to look for a job, as well as some measures of income inequality, are closely connected with the living arrangements people choose and, therefore, are important to policymakers.
The American Recovery and Reinvestment Act of 2009 provided $64 billion in stimulus funds to public school districts. A little over half of the money went toward expenditures, and most of that was used for capital outlays. The impact on employment was negligible.
When consumers can’t pay their credit card bills, they choose between delinquency and bankruptcy. A new economic model indicates that by changing the face value of delinquent debt, lenders can maximize repayment and make a difference in whether or not a household chooses bankruptcy.
Springfield, Mo., a city with a common name, has an economy with familiar successes and challenges. The health care sector is booming, and the cost of living is somewhat low, as are wages. But labor productivity seems to be subpar, and the poverty rate is above average.
While the Eighth District’s track record on business startups is less impressive than that of the nation since 2006, the District performed better than the nation over the same time period in regard to business shutdowns.
The U.S. economy lost some of its momentum over the winter. But the weakness did not extend to the labor markets, where job gains continued to be strong.
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Fed in Print: An index of the economic research conducted by the Fed.