Conversable Economist: A Foretaste of Warsh as Chair of the Federal Reserve
Kevin Warsh was nominated by President Trump in January 2026 to replace Jerome Powell as Chair of the Federal Reserve. He was confirmed by the US Senate last week and sworn in as the new Fed chair earlier this week. What are some of his views and priorities as he takes office? For a clue, […]
Where is AI in GDP statistics?
Filling the measurement gap Anton Korinek (PIIE) and Patrick McKelvey (Bank of Canada) Working Paper 26-9 The authors construct a macroeconomic estimate of total AI production for the United States, combining inference and R&D/training activities and applying quality adjustments based on the evolution of API prices at fixed performance levels and the pace of algorithmic progress. They estimate that […]
Skipping the factory: Service-led growth in sub-Saharan Africa
Michael Peters, Youdan Zhang, Fabrizio Zilibotti Across much of sub-Saharan Africa, growth is arriving without the factory boom that shaped earlier development miracles. Instead, workers are leaving farms for non-tradable consumer services. This column presents new evidence that suggests these sectors can generate real productivity and welfare gains, but their benefits are local and uneven. […]