7 August 2023 Africa has underperformed economically for a long time. Per capita GDP has risen less than 1% annually during the past 30 years (chart below); lagging all other emerging market regions during this period (although Latam has also slowed in the past decade). During this interval, meanwhile, output per person in the advanced [...]
Despite falling (and in some cases cyclically low) unemployment rates, wage gains are more modest now than a year ago. Central bankers are stumped by this mystery. Whatever happened to the Philips Curve, which showed a strong relationship between unemployment and wage/price inflation? At any rate, as long as wage gains remain modest, central bankers [...]