Deviations from the Taylor rule and the dual mandate

Nicolas Groshenny, 2 February 2011



According to its official mandate, the Federal Reserve sets the federal funds rate to achieve a dual goal of price stability and maximum sustainable employment. Since the global crisis erupted, debate has been raging over the Federal Reserve's conduct of monetary policy over the period 2002-2006.

Topics: Global crisis, Monetary policy
Tags: inflation, Taylor rules, unemployment

Is short-time work a good method to keep unemployment down?

Pierre Cahuc, Stéphane Carcillo, 1 February 2011



Short-time compensation (or short-time work) aims at reducing lay-offs by allowing employers to temporarily reduce hours worked while compensating workers for the induced loss of income. At present, short-time work schemes are widespread among OECD countries, having grown in popularity during the Great Recession.

Topics: Labour markets
Tags: OECD, Short-term work, unemployment

Immigration, offshoring and US jobs

Gianmarco I.P. Ottaviano, Giovanni Peri, Greg C Wright, 18 November 2010



Manufacturing production and employment in the US has been in decline over recent decades. This loss of jobs is often blamed on a combination of multinational firms relocating jobs abroad and immigrant workers increasing competition in the labour market. But measuring the impact of globalisation on jobs is more difficult than that, even if many choose not to believe it.

Topics: International trade, Migration
Tags: immigration, manufacturing, offshoring, unemployment, US

Unemployment and happiness: A new take on an old problem

Andreas Knabe, Ronnie Schöb, Joachim Weimann, 17 November 2010



Recently, economists and policymakers alike have been paying more and more attention to subjective wellbeing (Graham 2010).

Topics: Frontiers of economic research
Tags: happiness, life satisfaction, unemployment, utility

Animal Spirits, Persistent Unemployment and the Belief Function

Roger E. A. Farmer , 8 November 2010

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Topics: Labour markets, Macroeconomic policy
Tags: animal spirits, inflation, unemployment

The role of openness and labour market institutions for employment dynamics during economic crises

Elisa Gamberoni, Erik von Uexkull, Sebastian Weber, 29 September 2010



As a result of the global crisis and the related domestic and debt crises, global employment growth, according to the ILO’s Global Employment Trend (Jan 2010), slowed down to 0.7% in 2009 from 1.9% in 2007 and 1.4% in 2008. According to the ILO study, the slowdown occurred across all regions of the world except for the Middle East.

Topics: Global crisis, International trade, Labour markets
Tags: global crisis, labour market flexibility, unemployment

Trends in environmental concern as revealed by Google searches: The chilling effect of recession

Matthew E. Kahn, Matthew J. Kotchen, 21 August 2010



Google Insights is a publically available online tool for tracking aggregate Google search activity over time for specific geographic areas. Recent research shows that Google search terms are a powerful tool to predict public health epidemics (Pelat et al.

Topics: Environment, Global crisis
Tags: climate change, global warming, Google, unemployment

Welfare to work: Sticks rather than carrots

Jan van Ours, Bas van der Klaauw, 19 August 2010



Given difficult circumstances, governments are considering various policy instruments to increase the “reemployment” rate of unemployed workers. This is no easy task – traditional active labour market policies are often not very successful.

Topics: Global crisis, Labour markets, Welfare state and social Europe
Tags: Eurozone crisis, global crisis, unemployment, welfare state

Challenges in the coming phase of globalisation: A sense of déjà vu

Otaviano Canuto, José Manuel Salazar, 28 June 2010



The global crisis has hit workers hard. The ILO (2010) estimates that unemployment increased by more than 30 million in 2009 to 212 million jobless. While openness can contribute to growth and helps to buffer domestic shocks, it also increases exposure to external shocks.

Topics: Global crisis
Tags: global crisis, globalisation, unemployment

Can China save the world by consuming more?

Hans Genberg, Wenlang Zhang, 25 April 2010



“China is making all of us poorer” writes Paul Krugman in his blog at the New York Times (Krugman 2010). He is referring to the current account surplus of the Chinese economy draining aggregate demand from the rest of the world and leading to lower employment and income.

Topics: International finance, Macroeconomic policy
Tags: Chinese saving, global imbalances, renminbi, unemployment

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