Structural vs. Cyclical Unemployment Revisited: Doing Nothing Is Not a Smart Option

An update on the question of structural vs. cyclical unemployment, this time with respect to policy options for each. For background, see these previous posts:  on how economists define or distinguish between structural and cyclical and a look at the situation in 2011.  Time is short and specialization is efficient, so I'll quote Mark Thoma … Continue reading Structural vs. Cyclical Unemployment Revisited: Doing Nothing Is Not a Smart Option

Unemployment vs. Inflation: Which is Worse? Part I

Macro economic policy making is often characterized as a trade-off between achieving full employment vs. achieving stable money (no significant inflation). This relationship or trade-off,to the extent it exists, is called the Phillips Curve.  [note: the stability and existence of a long-run trade-off is highly contested by some]. In this post, I want to look … Continue reading Unemployment vs. Inflation: Which is Worse? Part I