Fifty years ago, Arthur Okun examined the relationship between output growth and the unemployment rate. The empirical relationship of the resulting “Okun’s law” has remained largely intact since then, including during the Great Recession. However, while the law does fit our intuition about economic relationships, it should not necessarily be taken to be causal.
Maria E. Canon, Marianna Kudlyak, Peter Debbaut
The labor force participation rate has fallen from over 67 percent in 2000 to almost 63 percent today. Among the reasons are the downward trends in the percentages of women and young people in the labor force.
The decline in U.S. trade during the Great Recession was worse than during previous recessions. But the difference was not merely due to the severity of the U.S. recession.
Central to Bitcoin is its independence from any institution or government, allowing anyone to engage in a direct transaction at a low cost. So, what exactly is it, and how does it work?
In the wake of the crisis, the Fed’s balance sheet increased from the historical 6 percent of GDP to more than 20 percent. As plans are made to return to normal monetary policy, it’s important to be aware of the challenges and potential pitfalls of this transition.
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