New empirical research shows that a tightening of monetary policy may lead to a robust rise in the labour share of income, contrary to what canonical models would suggest, as productivity declines by more than real wages. See Cantore et al. (2021), “The Missing Link: Monetary Policy and The Labor Share”, Journal of the European Economic Association, Volume 19, Issue 3, pp. 1592–1620. 21.
Despite a general slowdown worldwide and skyrocketing oil prices, we continue to generate growth. Our inflation numbers have indeed moved upwards and we recognize the difficulties that this brings. However, based on present commodity market conditions, we may soon see some relief. Our international reserves continue to rise, reaching $ Billion as of end-August.