The markets may have overreacted a bit to the details of the Fed’s QE3 tapering timetable and the prospect of the first interest rate hike taking place in two years’ time. Nonetheless, the growing...

In most advanced western economies the supply of labour is likely to be boosted by a rise in labour market participation during the coming year or two. This should help to prevent wage inflation...

Broad money growth has remained stable since late last year, with our measure of the M3 aggregate expanding by 6.2% over the 12 months to May.

The sharp drop in State and Local (S&L) government investment has had a smaller adverse impact on the unemployment rate than might have been expected. The ongoing fiscal consolidation may therefore...