By Charles Arthur Conant
...With An Account Of the industrial Crises Of The 19th Century And The concern Of 1907
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Additional resources for A History Of Modern Banks Of Issue
Private consumption, albeit slowing in 2002, outpaced overall GDP growth in 2001 and 2002, as household disposable income grew very strongly in both years (Figure 4). 1 per cent, respectively) – high wage increases due to automatic indexation, and personal income tax cuts (which were implemented in two steps in January 2001 and 2002, each one reducing tax receipts by little more than 1 per cent of GDP). Still, given the increasing uncertainty surrounding the economic outlook, households only spent part of their additional income.
This is why the economy behaves almost like a “normal” EU country in terms of output gap and inflation variability despite its small size and high degree of openness (Annex I). A cross-country comparison of results from the “triangular model” of inflation (Gordon, 1997)10 confirms Luxembourg’s stronger exposure to imported inflationary shocks and weaker contributions to inflation from excess demand, reflecting a generally smaller and less volatile unemployment gap. These results confirm the capacity of the Luxembourg economy to adjust employment relatively smoothly to aggregate demand growth by drawing on foreign labour.
Source: STATEC and OECD. 1 per cent. The fading in monthly growth rates was remarkably gradual compared with the sharp drop in overall activity. Apparently, having experienced bottlenecks in the recent past, employers in a number of sectors kept filling vacancies for fear of not finding enough staff during the next upswing. Hiring went on at a brisk pace in the public sector (public administration, health care and social services) (Figure 6), not least boosted by strong increases in public expenditure (see Chapter II).
A History Of Modern Banks Of Issue by Charles Arthur Conant