Sunday, July 25, 2010

A scary unemployment graph. Long term?

Median Duration of Unemployment
This recession looks very different, and much more troubling, than those in the recent past. I wonder how this dramatic change in the nature of unemployment will alter traditional macroeconomic relationships, such as Okun's Law and the Phillips curve. [...]

It's from the blog of a Harvard Economics professor. He goes on to suggest that long term unemployment may not exert as much downward pressure on inflation as people think.

Related Link:

The Great Recession is just the beginning

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