Economics brief: The natural rate of unemployment

Posted: August 25, 2017 in economy
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Policymakers have spent half a century in search of the natural rate of unemployment. The fifth in our series on big economic ideas

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Central bankers’ holy grail

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The natural rate of unemployment

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Blanket repression is the wrong way to deal with political Islamists

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Economics brief

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WHY does unemployment exist? If there is a central question in macroeconomics, this is it. There are few bigger wastes than the loss to idleness of hours, days and years by people who would rather be working. Unemployment can ruin lives, sink budgets and topple governments. Yet policymakers do not wage all-out war on joblessness. Most, like the Federal Reserve, America’s central bank, target what is known as unemployment’s “natural” …

via Economic Crisis


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