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Second Quarter 2024

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Posted 2024-04-15

The Last Mile

by Isabel Schnabel

This article is based on the Homer Jones Memorial Lecture delivered at the Federal Reserve Bank of St. Louis, November 2, 2023.

Posted 2024-04-15

Real Wage Growth at the Micro Level

by Victoria Gregory and Elisabeth Harding

This article investigates patterns in real wage growth in 2022 to determine whether wages have kept up with rising price levels and how this differs among labor market participants. Using the consumer price index for wages and imputing expenditure data from the Consumer Expenditure Survey, we separately measure nominal wage growth and inflation rates at the micro level. 

Posted 2024-04-15

Policy Instability and the Risk-Return Trade-Off

by Rodolfo E. Manuelli and Jose Martinez-Gutierrez

What is the impact of large swings in economic policy on the risk-return trade-off faced by investors? What is the impact of changes in policy regimes on investment strategies? In this paper we study the impact on returns of switches between periods of market-friendly economic policies and periods of populist policies.

Posted 2024-04-15

Accounting for the Effects of Fiscal Policy Shocks on Exchange Rates through Markup Dynamics

by Hyungsuk Lee and Junsang Lee

This study investigates how fiscal policy shocks affect the external sector through markup dynamics in advanced and developing economies. We focus on the role of markup dynamics as a channel through which fiscal policy has a distinct effect on real exchange rates.