Facebook IPO on Anvil as Growth Peaks

Is Facebook peaking? The assumption is justified seeing the slow growth of active users as the website crawls towards the 700 million active user mark before its oncoming IPO.

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Growth Forecasts and Informational Rigidities

From a new IMF working paper by Prakash Loungani:

We document information rigidity in forecasts for real GDP growth in 46 countries over the past two decades....

We investigate: (i) if rigidities are lower around turning points in the economy, such as in times of recessions and crises; (ii) if rigidities differ across countries, particularly between advanced countries and emerging markets; and (iii) how quickly forecasters incorporate news about growth in other countries into their growth forecasts, with a focus on how advanced countries' growth forecasts incorporate news about emerging market growth and vice versa.

Figure 6 from the paper shows how fast news is incorporated.

Figure 6 from Loungani (2011).

More on informational rigidities by Coibion and Gorodnichenko (2009, 2010), and Gorodnichenko (2010).

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