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Why Are Average Hours Worked Lower in Richer Countries? (IZA Institute of Labor Economics, 32-page read) It turns out it is not due to the distortionary taxes, which are more common in the developed countries. Its more to do with the fact that as labour incomes rise, workers’ preference for leisure become more attractive and hence the substitution away from an extra hour of work.
Dampening the Impact of Global Financial Shocks on Emerging Market Economies (IMF, 3 min read) A 60% spike in VIX can result in around 2% of GDP equivalent in capital outflow for an EM economy in one quarter. Strict macroprudential regulations can help emerging markets avoid recession resulting from these volatile capital outflows. They also allow EM economies to set an independent monetary policy based on domestic fundamentals (rather than changes in US rates).
Six High-Frequency Indicators for the Eventual Recovery (CalculatedRisk, 3 min read) The uptick in gasoline consumption, rise in total travellers, a gradual increase in hotel occupancy and diners re-opening are signs that travel and entertainment sector in the US is getting back on track – albeit slowly.