U.S. consumer price index increases by 2.5 percent over the year

February 15, 2020 The U.S. Bureau of Labor Statistics reports that the U.S. consumer price index rose 2.5 percent over the year in January. Compared to December 2019, the index increased by 0.1 percent. Interestingly, the index for medical care services rose 5.1 percent over the year. Shelter costs also increased quite considerably since JanuaryContinue reading “U.S. consumer price index increases by 2.5 percent over the year”

U.S. economy still in good shape for the moment

In the United States, economic growth was 2.1 percent annualized in the final quarter of 2019. In January of 2020, the U.S. and China signed a first limited trade agreement. However, tariffs on Chinese imports (and tariffs on U.S. exports to China) remain high overall with little signs that they will be either lowered orContinue reading “U.S. economy still in good shape for the moment”

Automation and labor market polarization – do we need a universal basic income?

No mass unemployment, but job polarization and an individualization of the ways of life. How technological change is changing our world of work and why unconditional basic income is not a universal solution. The process of automation and digitalization is advancing at a rapid pace. In the public discussion, both utopian visions of a futureContinue reading “Automation and labor market polarization – do we need a universal basic income?”

Labor and Capital in Times of the Knowledge Society

Wages in many economies are growing only moderately. In contrast, the profits of some large companies have risen sharply. Is there a struggle between labor and capital? A closer look suggests that such an interpretation would be too simplistic. In recent decades, wage growth have been subdued in many developed economies. While in many countriesContinue reading “Labor and Capital in Times of the Knowledge Society”

United States – solid economic growth in the last quarter of 2019

According to data released from the Bureau of Economic Analysis on January 30, the economy fared quite well in the fourth quarter of last year, with GDP growth at 2,1 % (annualized), the same rate as the 2,1% expansion registered in the third quarter. Private consumption was still solid (+1,8 % annualized), but less strongContinue reading “United States – solid economic growth in the last quarter of 2019”

A very brief overview on the causes of the US-China trade conflict

I think that there are three main causes for the current trade conflict between the United States and China (the so-called “Phase 1” agreement signed in January 2020 brought some relief, but I do not think that the trade conflict will end soon): political-economic motives, dissatisfaction with the World Trade Organization (WTO), and reasons ofContinue reading “A very brief overview on the causes of the US-China trade conflict”

Higher productivity growth for better and more sustainable economic development after the Covid-19 crisis

The outbreak of the coronavirus epidemic has led to a slump in economic output in many countries around the world. We do not yet know how long this pandemic and its health, social and economic consequences will last. In order to at least overcome the economic crisis, productivity gains – especially in service sectors –Continue reading “Higher productivity growth for better and more sustainable economic development after the Covid-19 crisis”

Foreign Direct Investment is a Key Factor in Fostering Economic Growth and Risk-sharing in the Euro Area

First published November 2014 Cross-border ownership of businesses is a key characteristic of a truly integrated economic area. In the euro area, however, foreign direct investments have been badly hit in recent years. In particular, there was a sharp drop in investment flows from the northern member countries to the southern periphery from already lowContinue reading “Foreign Direct Investment is a Key Factor in Fostering Economic Growth and Risk-sharing in the Euro Area”

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