Weak commodity prices and particularly the decline in oil prices in the last six months of 2014 were widely greeted by analysts and economists as equivalent to a tax cut, from which many concluded that global growth would rebound during the second half of 2015.
How much slack is in the US labor market? According to the US Federal Reserve (Fed), there is still a lot. But we doubt it. In this paper, we give our reasons, with particular emphasis on wage rigidities.