A weak trade performance and a sharp reversal in military spending held GDP growth to 2.6 percent in the fourth quarter. This brought the full year growth (Q4 to Q4) to 2.5 percent, only slightly above the growth rate of the prior three years.
A new CEPR paper finds that Greece will need a fiscal stimulus if it is to emerge from years of mass unemployment in the near future. The report, “The Greek Economy: Which Way Forward?” notes that after six years of recession, Greece has completed one of the largest adjustments in the world, with import spending falling 36 percent and the government achieving the largest cyclically adjusted primary budget surplus in the eurozone.
New posts on the Haiti: Relief and Reconstruction Watch blog break down where things stand 5 years after Haiti’s devastating earthquake. Access to housing and good-paying jobs remain among pressing needs as U.S. contracting has largely sidestepped Haitian organizations, while the U.N.-caused cholera epidemic that also began in 2010 continues to kill hundreds each year. Read Research Associate Jake Johnston's article in The Nation.
CEPR's Dean Baker said that the Democrats’ plan for a financial transactions tax would help bring financial markets into the 21st century. He added that such steps could have a substantial impact and help build a stronger economy with more widely shared prosperity.
252,000 jobs were created in December, reflecting an economy now adding jobs at a healthy pace. However, last month's wage gains were almost entirely reversed, indicating that the labor market will have to get considerably tighter before we see substantial wage growth. More in this month's Jobs Byte.
This new CEPR paper examines the impact of population growth on global climate change. Economist David Rosnick employs the Global Change Assessment Model (GCAM) to estimate the effects of population growth on the global average temperature by 2100.