In the last couple of years many theories have been put forth explaining the decline of the labor share in advanced countries. In this newsletter we present a recent research which suggests that monopoly power together with globalization better explain the reduction in labor share.
Gourinchas and al and Wren-Lewis have been expecting for the pound to continue depreciating without benefiting the UK economy. But the announcement of the June 8 general election might reverse the trend as new research by Sornette and al. indicates and Didion evaluates Prime Minister May’s negotiating strategy.