An in depth Board article launched on Friday:
Determine 1 shows the truth that the US has reverted to pre-Covid pattern, whereas different economies haven’t (pity poor UK, buffeted by Covid and Brexit).
From the Conclusion:
Our evaluation factors to progress divergence between the U.S. and AFEs being the results of a wide range of elements, together with variations in financial and monetary insurance policies, variations in labor and capital market establishments, and totally different region-specific shocks. It’s at the moment difficult to evaluate how a lot precisely of the divergent efficiency is defined by every particular person aspect. Total, our evaluation means that structural elements play a task in the way in which totally different economies responded to cyclical insurance policies, and warning in opposition to decoding latest productiveness developments as solely reflecting everlasting shifts throughout economies.
