Trying to account for the decline in the labour share

Gene Grossman, Ezra Oberfield  After a century of stability, the labour share of national income began to decline around 2000 in the US and many other countries. This column reviews the growing literature examining the potential reasons for the decline of the labour share, which include (1) capital-biased technical change, (2) globalisation and the rise […]

How global risk perceptions affect economic growth

Jon Danielsson, Marcela Valenzuela, Ilknur Zer  The relationship between financial risk and economic growth is complex. This column finds that perceptions of high risk unambiguously harm growth, while perceived low risk has an initial positive impact, which eventually turns negative. Global risk has a stronger effect on growth than local risk, via its impact on […]