All this does not mean there is no natural unemployment rate, only that there is nothing natural about it. There never was.Project Syndicate
Nothing Natural About the Natural Rate of Unemployment
Edmund S. Phelps | 2006 Nobel laureate in economics, and Director of the Center on Capitalism and Society at Columbia University
1 comment:
Rethinking the Phillips curve
Comment on Edmund S. Phelps on ‘Nothing Natural About the Natural Rate of Unemployment’
Edmund Phelps summarizes: “What explains the paradox of low unemployment despite low inflation (or vice versa)? So far, economists – structuralists as well as diehard Keynesians – have been stumped.”
The paradox is explained by the fact that the concept of the Phillips curve has been messed up back in the 1960s by both structuralists as well as diehard Keynesians.
For details see:
NAIRU, wage-led growth, and Samuelson’s Dyscalculia
https://axecorg.blogspot.de/2015/01/nairu-wage-led-growth-and-samuelsons.html
Keynes’ Employment Function and the Gratuitous Phillips Curve Disaster
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2130421
Putting economic policy on scientific foundations
https://axecorg.blogspot.de/2017/08/putting-economic-policy-on-scientific.html
The Phillips curve is since 60+ years one of the conspicuous landmarks of the failed science economics and Edmund Phelps is still way behind the curve.
Egmont Kakarot-Handtke
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