Canada’s Monetary Policy Report: If Text Could Speak, What Would It Say?
The Bank of Canada’s Monetary Policy Report is getting easier to read, researchers at the central bank find using textual analysis. They look at the report from 1995 to 2018, and conclude that readability varies by governor and the documents have, on average, been slightly more complicated than an average Canadian could be expected to understand. Under Mark Carney, who now heads the Bank of England, complexity increased -- but the gap with the average Canadian’s reading level has fallen to its lowest on record under current Governor Stephen Poloz. In fact, the typical person could now understand the text.
Living at Home Ain’t Such a Drag (on Spending): Young Adults’ Spending In and Out of Their Parents’ Home
As young adults increasingly live with their parents, they’re spending less. Adult children who move out of their parents’ home spend about $13,000 more annually than their counterparts who don’t, based on this Fed analysis, with about half of that due to increased housing and utility expenses. That’s important on aggregate, because some 3.25 million extra young adults are living with their parents now than if pre-recession trends had prevailed. If they all moved out and spent like their out-of-the-nest peers (probably an unrealistic assumption), it could boost spending by $40 billion, or 0.3 percent of overall consumption spending.
That said, “the increased saving rates among young adults living at home might lead them to be better prepared for the financing of future household purchases, their children’s educations, or their retirement.”
This article provided by Bloomberg News.