Home Economy The pandemic’s effects on the economy are coming to an end

The pandemic’s effects on the economy are coming to an end

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Labor market developments continue to show the economy outstripping the pessimistic expectations of monetary and fiscal authorities. It is well past time to reign in unnecessary monetary and fiscal expansion that are driving the economy into the wall created by artificially created constraints. 

In September and October, the unemployment rate declined to an unexpected 4.6 percent, from 5.2 percent in August and 4.8 percent in September, continuing its rapid descent from the pandemic/recession peak of 14.8 percent in April 2020. This decline recovers 90 percent of the 11.3 percentage-point rise in the unemployment rate in February to April 2020, and 99 percent of the rise above the estimated natural rate of unemployment of 4.5 percent at the time. 

Most economic analysts have consistently underestimated the pace of improvement of the economy since the bottom of the recession in April 2020. For example, in August 2020, a survey of members of the National…

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