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Supply Chain Is 40% of Inflation

The Big Picture

That is according to a study by Julian di Giovanni, who publishes at the NY Fed’s blog Liberty Street Economics. inflation over the 2019-21 period was due to the jump in demand for goods while 40 percent owed to supply-side issues that magnified the impact of this higher demand.”. Liberty Street Economics, August 24, 2022).

Medicine 363
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Labor or Capital Driven Inflation?

The Big Picture

When the Economic Policy Institute analyzed this, they discovered: “Since the trough of the COVID-19 recession in the second quarter of 2020, overall prices in the NFC [non-financial corps] sector have risen at an annualized rate of 6.1%—a price growth that characterized the pre-pandemic business cycle of 2007–2019.

Economics 336
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Can Economists Predict Recessions?

The Big Picture

In the past four quarters, economic forecasters have, on average, predicted a 42% probability of a contraction in the U.S. economy in the next quarter, according to the Survey of Professional Forecasters (SPF) conducted by the Federal Reserve Bank of Philadelphia. .” 40%) probability of happening. By Jeremy Majerovitz St.

Economy 298
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What Else Might be Driving Sentiment?

The Big Picture

I run through 30 charts in 30 minutes that explain where we are in the economic cycle, what markets are doing, and what it means to their portfolios. The economy is not on the right track, even as Americans’ Net Worth Surged by Most in Decades During Pandemic. 2 Regardless, something is amiss. Atlantic, Oct.

Media 351
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4 Economic Charts That Might Surprise You

A Wealth of Common Sense

Four charts about the economy you might find surprising: 1. The Congressional Budget Office released new research comparing inflation on a basket of goods and services households at different income levels consume between now and 2019 along with changes in wages. Wages are cumulative too.

Economics 144
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The Great Resignation Is Long Over

The Big Picture

I have detailed over the past decade or so the lagging nature of wages in America — deflationary in economic terms — and how that had begun to change in the late 2010s pre-pandemic. This attests to the robustness of the labor economy, recession or not. Then came the pandemic, and a huge federal worker subsidy.

Medicine 331
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Question #2 for 2024: How much will job growth slow in 2024? Or will the economy lose jobs?

Calculated Risk

Earlier I posted some questions on my blog for next year: Ten Economic Questions for 2024. 2) Employment: Through November 2023, the economy added 2.6 2) Employment: Through November 2023, the economy added 2.6 Or will the economy lose jobs? Or will the economy lose jobs? million jobs in 2023. million jobs in 2023.

Economy 119