Comments and discussion
Article Abstract:
Lawrence Katz and Alan Krueger argue that an aging labor force has reduced the tendency of workers to be unemployed. Young people have experienced longer periods of joblessness than the middle-aged or the elderly. The explanations that they offer can account for at least half or the entire shift in NAIRU. They focus their study on two changes: the decline in the natural rate and the difference between the present unemployment rate of today and that which prevailed at the last business cycle peak in the late 1980s.
Publication Name: Brookings Papers on Economic Activity
Subject: Economics
ISSN: 0007-2303
Year: 1999
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Foundations of the goldilocks economy: supply shocks and the time-varying NAIRU
Article Abstract:
The US economy was at its most enviable during the mid-1990s, when it was said that the US achieved a 'goldilocks economy', that is, having low interest rates and low inflation rates. This was the general condition that boosted the American stock market to levels never before witnessed. Several major factors can help explain this economic phenomenon, namely, the rapid growth of production of high technology products and the presence of the nonaccelerating inflation rate of unemployment.
Publication Name: Brookings Papers on Economic Activity
Subject: Economics
ISSN: 0007-2303
Year: 1998
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The macroeconomics of low inflation
Article Abstract:
A study on the effects of unemployment on inflation and stabilization presented during the Brookings Panel on Economic Activity held from Mar. 28 to 29, 1996 is discussed. A model is developed to disprove the existence of a natural unemployment rate. It is shown that unemployment rate is dependent on inflation rate, and that a constant inflation rate leads to maximum employment and output while zero inflation increases sustainable unemployment.
Publication Name: Brookings Papers on Economic Activity
Subject: Economics
ISSN: 0007-2303
Year: 1996
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