Monday, 17 September 2012

SF Fed Quantifies Uncertainty's Impact on Jobs

One percentage point of the current rate of unemployment is due to increased economic uncertainty, a new study from the San Francisco Fed argues. "Heightened uncertainty lowers economic activity and inflation, and thus operates like a fall in aggregate demand," the paper argues. "As a consequence, high uncertainty has been a greater drag on economic activity in the Great Recession and recovery than in previous recessions."

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