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Macro

Measuring the natural rate of unemployment

Does the  natural rate of unemployment have an active role in the business cycle?

Climate

The U.S. climate policy

New research on the importance of incorporating a modest carbon fee in climate policies starting in 2025. What are the challenges in implementing climate policies in the U.S.

Banking

On failing banks

New research on whether bank failures are predictable and why the structure of the banking sector changes after a crisis.

Macro

The relation between beliefs and economic choices

New research on the relationship between beliefs, information, and behavior.

Tech

AI useful applications

After all the fearmongering about AI’s negative impact on jobs, two papers highlight the positive effects of AI on middle-class jobs and economic research.

Books

New and noteworthy books in economics (February)

The four books we selected for this month put forth radical proposals: an alternative to conventional economic models, the costs of financialization in the US, the role of macroprudential regulation in generating financial cycles, and an alternative strategy to boost India’s growth.

Ukraine-Russia War

The costs of war

New research on which countries pay the price of war.

U.S.

On the U.S. federal debt

What is the outlook of the U.S. federal debt? Can fiscal deficits finance themselves?

Monetary Policy

Excess reserves and monetary policy

How do excess reserves impact the transmission of monetary policy?  What is the optimal supply of reserves under uncertainty?

Economic Growth

Optimism and global economic growth

Can optimism boost economic activity? New research looks at the differences between G7 and non-G7 countries.  Is optimism about 2024 economic prospects warranted?

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