But “if you look at the labor market, you can find a smoking gun in the mid-1990s. real hourly wages finally began to rise at precisely that time, after more than two decades of decline. Unemployment rates fell below 4 percent — levels reached only briefly in the 1960s…
Should it be surprising that employers turned to labor-saving technologies at this time?
This acceleration was very widely shared, including sectors like retail where historically productivity growth had been limited.
The timing of this acceleration has been viewed as a puzzle, with no “smoking gun” for simultaneous productivity boosting innovations across this range of industries over a short period.
Since specialization in comparative advantage maximizes production, trade can make every country better off. In Ricardo it is the natural products of the soil, Portugal is good at producing wine and so England has a comparative advantage in cloth.
elegans Mao, Yingyi (2013) Designing novel emulsion performance by controlled hetero-aggregation of mixed biopolymer systems Marchesi, Milena (2013) Contested subjects: Biopolitics & the moral stakes of social cohesion in post-welfare Italy Marino, Michella M (2013) Sweating femininity: Women athletes, masculine culture, and American inequality from 1930 to the present Martel, Philippe Paul (2013) Measuring proton spin polarizabilities with polarized compton scattering Masoumi, Amirhossein (2013) Supply chain management of perishable products with applications to healthcare Massoni, Shawn Christopher (2013) Rec A dynamics & the SOS response in Escherichia coli: Cellular limitation of inducing filaments Matarazzo, Stacey Ann (2013) Knuckle-walking signal in the manual phalanges and metacarpals of the great apes (Pan and Gorilla) Mc Carthy, Jennifer Lynn (2013) Conservation and ecology of four sympatric felid species in Bukit Barisan Selatan National Park, Sumatra, Indonesia Mc Ennis, Kathleen (2013) Particle behavior on anisotropically curved interfaces Mc Henry, Kristen Abatsis (2013) Promising prevention: Greening the breast cancer movement in the United States Mc Manus Scircle, Melissa (2013) Visiting or here to stay?Consider the simplest model (based on Krugman 1979). In each country, consumers have a preference for variety but there is a tradeoff between variety and cost, consumers want variety but since there are economies of scale – a firm’s unit costs fall as it produces more – more variety means higher prices.Preferences for variety push in the direction of more variety, economies of scale push in the direction of less. The natural rate of unemployment, or u-star, is used by economists and policymakers to help assess the overall state of the labor market.As the economy has transitioned from recovery to expansion, the role of monetary policy has shifted to sustaining the expansion by gradually moving conventional and unconventional policy back to normal.