An intensive Board article launched on Friday:
Determine 1 shows the truth that the US has reverted to pre-Covid development, 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 financial insurance policies, variations in labor and capital market establishments, and completely different region-specific shocks. It’s presently difficult to guage how a lot precisely of the divergent efficiency is defined by every particular person ingredient. Total, our evaluation means that structural elements play a job in the best way completely different economies responded to cyclical insurance policies, and warning in opposition to deciphering latest productiveness developments as solely reflecting everlasting shifts throughout economies.
