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Fourth Quarter 2020

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Posted 2020-10-22

Responses of International Central Banks to the COVID-19 Crisis

by Jacob Haas, Christopher J. Neely, and William R. Emmons

This article reviews and explains the recent policy reactions of the Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan to the financial and macroeconomic turmoil caused by the COVID-19 pandemic. The financial and monetary policy actions of major central banks in the most recent crisis have, by some metrics, surpassed their responses to the Global Financial Crisis of 2007-09 in both swiftness and scope.

Posted 2020-10-22

The Economic Effects of the 2018 U.S. Trade Policy: A State-Level Analysis

by Ana Maria Santacreu and Makenzie Peake

We evaluate, empirically, the effect of changes in trade policy during the 2018-19 trade war on U.S. economic activity. We begin by documenting that sectors and states across the United States are heterogeneous in their exposure to international trade.

Posted 2020-10-22

Why Is the Labor Share Declining?

by Sangmin Aum and Yongseok Shin

The fraction of national income accruing to labor (the labor share) had been roughly constant in developed economies for much of the 20th century but has fallen since the 1980s. We review several of the leading explanations in the literature for the declining labor share.

Posted 2020-10-22

Fertility and Internal Migration

by Pei-Ju Liao, Ping Wang, Yin-Chi Wang, and Chong K. Yip

While there is a renewed literature connecting internal migration to various issues related to structural transformation such as urban labor and housing markets, the relationship between internal migration and demographic transition is much under-studied despite its importance in the process of economic development. Our article fills this knowledge gap.