Merijn Knibbe — Bill Mitchell and Joan Muysken on underemployment, macro-modelling and policy

Yesterday, I posted some graphs about underemployment in the EU, mainly to draw people’s attention to this important subject. The main takeaway:
Underemployment is high as well as cyclically sensitive.
And I stated that we should start to incorporate it in macro models. Well, Bill Mitchell and Joan Muysken are already doing this, I discovered. And incorporating underemployment in models turns out to make a large difference....

Real-World Economics Review Blog
Bill Mitchell and Joan Muysken on underemployment, macro-modelling and policy
Merijn Knibbe