Do developed financial markets lead to economic growth or result from it? While some economists argue for the latter, the author maintains that financial markets—despite their shortcomings of late—are an essential ingredient for an economy to grow in the long run.
Juan Carlos Hatchondo, Leonardo Martinez, Juan M. Sánchez
During the last global recession, house prices fell in some European countries almost as much as in some U.S. states. However, mortgage defaults occurred at a much lower rate in Europe. The authors say the difference might be explained by two regulations that apply in Europe but are used on a limited or much less restrictive basis in the U.S.
Louisville is the focus in the first installment of this new data-driven feature in The Regional Economist. Unlike many other older cities, Louisville has smoothly transitioned from the industrial economy to the service economy, thanks in no small part to its strong health-care and food-service industries.
The CPI and PCE price index are popular for measuring inflation. James Bullard suggests adopting a standard for estimating and adjusting for consumer inflation.
Rubén Hernández-Murillo, Elise Marifian
Similar to those across the U.S., urban areas in the Eighth District host the largest employers in manufacturing and the largest service employers.
Alejandro Badel, Brian Greaney
The relationship between drug abuse and job status in the U.S. is complex. Does drug abuse lead someone to become or remain jobless, or does unemployment lead to drug abuse? This article provides a quick glance at this relationship, using data from the annual National Survey on Drug Use and Health.