I recently prepared an entry on the macroeconomic effects of oil shocks for the new edition of the Palgrave Dictionary of Economics. Here I sketch some of the material from that essay and explore the implications for where the economy may be headed next.
Category Archives: employment
Responding to supply shocks
It seems pretty clear to me that a monetary contraction isn’t the appropriate policy response to a supply shock. Apparently there are those within the Federal Reserve who see things differently.
The under-reported good news about productivity
If you focus too much on the latest statistics and speculation about what could go wrong, it’s easy to lose sight of some very important long-term trends. The solid growth of U.S. productivity is one piece of very good news that’s not getting sufficient attention.
How many people should be working in America?
Quite a few commentators have suggested that the labor force participation rate is a much
better indicator of the health of the U.S. labor market than is the unemployment rate. I feel
that quite a few commentators have this wrong.
Are the new employment figures really that bad?
The unemployment rate has reached its lowest level of the last four years, and yet some
economists still wring their hands in despair over the anemic job situation. I’m having some
trouble following their reasoning on this one.
Disappointing job statistics?
The May employment figures
released by the Bureau of Labor Statistics yesterday sent mixed signals, revealing that U.S. job
creation slowed in May even as the unemployment rate edged slightly lower.