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FEDS Paper: Hysteresis and the Role of Downward Nominal Wage Rigidity: Evidence from U.S. States(Revised)

12/16/2025 Federal Reserve Central banks

Hie Joo Ahn and Yunjong EoThis paper empirically investigates the sources of hysteresis, emphasizing the role of downward nominal wage rigidity using U.S. state-level payroll employment growth. U.S. states exhibit heterogeneous recoveries, with L-shaped and U-shaped recessions corresponding to persistent hysteresis and full recovery. L-shaped recessions are importantly driven by demand shocks and reinforced by downward nominal wage rigidity, which prolongs employment losses by raising real wages and deepening downturns.

Europe May Roll Back Combustion Engine Ban

12/16/2025 New York Times USA

A proposal to revise an E.U. law requiring carmakers to stop producing combustion engines by 2035 would offer some relief to automakers, but it sets back the region’s climate goals.

Could your boss be lonely? Here’s why it matters more than you might think

12/16/2025 The Conversation UK

PeopleImages/ShutterstockLoneliness is the pain we feel when our social connections fall short of fulfilling our needs.

Jobs Report Could Provide Overdue Clarity on Uncertain Economy

12/16/2025 New York Times USA

Hiring and unemployment data for November will offer a snapshot of a cooling job market buffeted by President Trump’s policies.

How rogue nations are capitalizing on gaps in crypto regulation to finance weapons programs

12/16/2025 The Conversation USA

Two years after Hamas attacked Israel on Oct. 7, 2023, families of the victims filed suit against Binance, a major cryptocurrency platform that has been plagued by scandals.

With UK unemployment rising, will the government’s plan for young people pay off? An economist’s view

12/16/2025 The Conversation UK

Monkey Business Images/ShutterstockThere are nearly one million young people in the UK who are not in employment, education or traini

Teenagers are preparing for the jobs of 25 years ago – and schools are missing the AI revolution

12/16/2025 The Conversation UK

Matej Kastelic/ShutterstockThe government has recently released its national youth strategy, which promises better career advice for young people in England. It’s sorely needed: for teenagers today, the future of work probably feels more like a moving target than a destination. Barely three years after ChatGPT went mainstream, the labour market has already shifted under young people’s feet.

Government’s growth ambitions meet RRF reality

12/16/2025 Macropolis European Union

The government was battered this week by farmers blocking national roads and key infrastructure and from its own parliamentary group, which questioned openly the administration’s approach, the Eurogroup’s unanimous election of Greek Finance Minister Kyriakos Pierrakakis as its president for the next two and half years was a welcome development for Prime Minister Kyriakos Mitsotakis, at least on the public relations front.

PM faces new challenges as public sides with farmers, Tsipras questions recovery

12/16/2025 Macropolis European Union

The parliamentary debate over next year’s budget is due to conclude with Prime Minister Kyriakos Mitsotakis intervention this Tuesday. His comments will be made against the backdrop of an ongoing protest by farmers, which seems to have significant public support, and the questioning of Greece’s recovery under the New Democracy administration by former PM Alexis Tsipras, who may emerge as Mitsotakis’s main rival in the months ahead.

No surprises in Trump’s NSS for Greece as Athens outlines Ukraine position

12/16/2025 Macropolis European Union

The US National Security Strategy (NSS), published on November 5, crystallises many of the core elements of the White House’s global approach.

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