Saturday, December 12, 2009

Seven Lean Years for the US ?

Mark Thoma (University of Oregon and Economist’s View) calculates that, from the experience of previous US recessions, seven years could be necessary for the unemployment rate to return to five percent. The process could be accelerated, he believes, by adequate economic policies.

Note that the current unemployment rate is quite similar to the one reached during the 1981-82 recession (10.8 percent).

Read his paper here .

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