I think its worth noting here that NGDP never had “catch-up” growth, its still far below the previous trend, and the output gap is closing very slowly. So the simple explanations that tie NGDP growth to job growth don’t have to break to establish the type of “jobless” recovery we are still seeing. Okun’s law has been holding pretty well throughout the great recession.
I think its worth noting here that NGDP never had “catch-up” growth, its still far below the previous trend, and the output gap is closing very slowly. So the simple explanations that tie NGDP growth to job growth don’t have to break to establish the type of “jobless” recovery we are still seeing. Okun’s law has been holding pretty well throughout the great recession.