Do we have a New Economy
Year: 2005
Type: preprint
Abstract: In this speech, Sushil B Wadhwani, argues that the US and UK economies are 'new' in that structural changes have led to a breakdown of some of the historical relationships that help inform the setting of monetary policy. Evidence is presented suggesting that the equilibrium rate of unemployment has fallen in both countries, and that the underlying rate of productivity growth has risen in the United States. Dr Wadhwani also argues that an intensification of product market competition and mis-measurement of capacity utilisation might help to explain why conventional price equations have tended to overestimate inflationary pressure.
Source: SSRN Electronic Journal
Author: Sushil Wadhwani
Institution: Bank of England
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2254918722