To bring inflation closer to the target and to reduce the high level of cyclical unemployment
, the NIER recommends that the repo rate be lowered to 1.
In a number of other countries, notably Sweden and Denmark, unemployment has remained consistently low--except for a bout of high cyclical unemployment
at the start of the 1990s.
Summers arranged the papers in three broad topics: Describing and Measuring Unemployment, Cyclical Unemployment
, and Structural Unemployment.
Thus, cyclical unemployment
is lower than in the mid-1990's, and the level of unutilized resources in the economy is lower.
Moreover, while past efforts to deal with cyclical unemployment
have included large public jobs programs, expanded budgets, tax cuts, or new investment, these solutions have not usually had an early impact on recessions or acted as preventatives.
Resource utilization on the labour market is thus below the level required to maintain a stable two-percent inflation rate; in other words, there is substantial cyclical unemployment
and even greater cyclical underemployment.
37) This weak tendency was due chiefly to a soft labour market with substantial cyclical unemployment
Inflationary pressure is currently very slight, and cyclical unemployment
is estimated at some 50 000 persons.
During this time, the labour market will improve, but the decline in cyclical unemployment
will be relatively slow.
His estimated unemployment equation suggests that most of the rise in unemployment in the 1970s is explained by an increase in the natural rate due to increased dispersion, not to cyclical unemployment
associated with aggregate-demand shocks.
In this way, prolonged cyclical unemployment
causes permanent shrinkage of the labour force.
is when workers lose their jobs during economic downturns as measured by Gross Domestic Product (GDP), which usually accounts for high unemployment rates.