The National Bank of Georgia publishes the next paper in its NBG Working Paper Series. The working papers aim to present research on topics relevant to central banks and economics profession. The papers are circulated to elicit comments and encourage debate on ongoing research. The Working Paper Series are coordinated by the Macroeconomic Research Division and will focus on topics relevant for central bank policy, including macroeconomic modeling, monetary and exchange rate policies, financial stability, etc.
The National Bank of Georgia is pleased to announce the publication of a new entry in its NBG Working Paper Series, titled "Covid-19 and the Return of the 3-Star Consumption Functions in the US". This paper is a collaborative effort between the staff of the Macroeconomics and Statistics Department, Douglas Laxton (Advisor to the NBG) and Jared Laxton (Economist of Advanced Macro Policy Modelling (AMPM)). The paper examines macroeconomic developments in the United States, focusing on robust consumption dynamics despite tightened monetary policy, influenced by strong household balance sheets and surging stock market prices. The research also addresses potential macro-financial risks and evaluates current US monetary policies, incorporating insights from economists Olivier Blanchard and Larry Summers. This resilience is critical in shaping the post-COVID-19 economic landscape and carries significant implications for the global economy, including Georgia as a small open economy country. We extend our gratitude to Olivier Blanchard for his invaluable feedback on this research. We invite the global community to access this paper at NBG Working Paper Series page, engage with its findings, and contribute to the ongoing economic debate. The working paper can be accessed at the following page.
