On the Relationships between Wages, Prices, and Economic Activity
We take a closer look at the connections between wages, prices, and economic activity. We find that causal relationships between wages and prices are difficult to identify, and the ability of wages to help predict future inflation is limited. Wages appear to be useful in assessing the current state of labor markets, but they are not necessarily sufficient for thinking about where the economy and inflation are going.
Peer-to-Peer Lending Is Poised to Grow
Peer-to-peer lending—a type of lending which matches individual borrowers with investors—is a recent innovation. But because it fills at least two gaps left by traditional lending sources, the peer-to-peer-lending market is likely to continue growing for some time.
Bitcoin versus the Dollar
You can’t hold a bitcoin in your hand, but you can spend one. Bitcoins are digital representations of value, a fiat currency based on cryptography. It’s perhaps too early to assess the future of bitcoin, but in terms of number of transactions, total value, and price stability, it is not currently a major competitor of the US dollar.