Where Do Recessions Come From?
The Federal Reserve Bank of St. Louis recently published two articles which happened to catch our interest. The first is with respect to the labor market. In one graph, the inflationary pressure we are experiencing is well displayed. The graph in essence shows the disparity, over time, between labor supply and demand at: “Are labor supply and labor demand out of balance? | FRED Blog (stlouisfed.org)”. The imbalance (workers required) stands at 4.7 million. It will be interesting to see how the interest rates are impacted as the Fed balances the recent banking crises and labor driven inflation. Also, we thought the overview of the business cycle was of interest as well All About the Business Cycle: Where Do Recessions Come From? | St. Louis Fed (stlouisfed.org).