Monday, February 14, 2011

Unemployment The New Normal

There has been a lot of debate over the new normal. Traditionally we viewed the economy to be operating at potential when the unemployment rate was 5%. Following the recession there has been a lot of talk over the new normal. Will see unemployment at 5%. Here is an article at CNN (reviewing a more technical article at the Federal Reserve Bank of San Francisco).

We talked about this a lot last semester. I made a few comments that I think are still true today (here and here).

Tomorrow we will start our discussion of the labor market. Many of these terms are new, but hopefully after tomorrow you'll know a bit more.

1 comment:

  1. Unemployment is definitely a huge thing to debate about, I believe that unemployment rates effect the whole market, I am working in Forex market where we need to be strongly aware of all these situations, so that will really help us succeed, I am working with OctaFX broker where I am able to work easily with their daily market updates facilities, it is highly helpful and allows me to work easily, so that’s why I am able to succeed and make profits consistently.