Global Economy

Global Economy An angle grinder cuts through a steel pipe causing sparks to fly
Photo: Csaba Toth – Getty Images

Wage Growth in Advanced Economies

Ivailo Arsov and Richard Evans

Nominal wage growth in advanced economies has been sluggish, despite unemployment in a number of places falling to levels consistent with full employment. This article finds that, in most economies, low wage growth does not reflect a weaker relationship with unemployment. Instead, lower productivity growth, the difficulty of cutting wages following the global financial crisis and a decline in labour's bargaining power help explain some of the wage sluggishness. There also appears to be a common, but yet unidentified, factor that has weighed on wages over the past two years.

employment, wages
Global Economy Chinese banknotes cover a table
Photo: Hudiemm – Getty Images

Non-bank Financing in China

Joel Bowman, Mark Hack and Miles Waring

The rise of shadow banking activities over the past decade has provided a range of benefits to the Chinese economy and financial system. Yet, it has also raised considerable financial stability risks, prompting Chinese authorities to announce many changes to the regulatory and supervisory framework. This Bulletin article examines the nature and complexity of shadow banking and highlights the challenges facing the Chinese authorities.

china, shadow banking