The OECD’s newly released findings from its productivity database focuses its attention on the “productivity paradox” (mentioned in the Record’s previous post). Much is being debated around why productivity growth has been slowing down despite “significant technological change, increasing participation of firms and countries in global value chains and rising education levels in the labor […]

For the first time since 1982, productivity in the U.S. economy may decline. A new projection for 2016 by The Conference Board has output per hour worked, a measure of labor productivity, slow down by 0.2 percent. Labor productivity measures how efficient workers are in the production process. In the long run, an economy’s productivity […]

The G7 Summit is underway in Japan and the global economy is at the top of the agenda, yet the groups unrivaled influence over it is no more. Its share of world GDP has declined from close to 70 percent in the early 1990s to just over 45 percent today. Emerging and developing economies are […]

The Fed has put markets on notice that another increase in interest rates could be expected this June or July. The Fed’s objectives are clear – full employment and stable inflation – but it continues to struggle between improvements in the unemployment rate yet slower than desired inflation. The puzzle is that lower unemployment should lead to higher inflation as […]

The latest Brookings-Financial Times TIGER (Tracking Indices for the Global Economic Recovery) Index reveals global economic recovery remains weak, uneven, and in danger of stalling yet again. The world economy continues to be beset by mediocre growth, hesitant or impotent policy actions by national governments, and a dearth of confidence among households and businesses. Analysis by Eswar […]

The latest update to the Brookings-Financial Times TIGER (Tracking Indices for the Global Economic Recovery) Index reveals a world economy with sharp divergences in growth prospects between the advanced economies and emerging markets, and within these groups as well. Eswar Prasad and myself update TIGER twice a year, around the times of the IMF-World Bank Meetings of finance ministers, central […]

On rare occasion does the Federal Reserve cite international developments as a major factor in its domestic policy decisions, but that is precisely what happened this September. Despite a strengthening U.S. labor market and an increase in the Fed’s own projection for U.S. growth next year, the Fed decided to delay its much anticipated lift-off […]