The Natural Rate of Unemployment
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The natural rate of unemployment hypothesis proposed in the 1960s has dominated thought about the causes of and possible solutions to unemployment. It asserts that only supply-side measures can achieve sustainable reductions in unemployment. In the 1980s however European unemployment rates rose sharply despite supply-side innovations to economic policy inspired by the hypothesis. These essays reflect retrospectively on the state of the hypothesis and look forward to the emergence of a new wisdom regarding unemployment.
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