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How does 'full employment abandoned the macroeconomic story' affect economic policies?

2024-11-12 09:52
2024-11-12 14:20

It can lead to a change in focus for economic policies. Instead of policies mainly targeting full employment, they may start to target other aspects such as improving the skills of the existing workforce.

More Answers

The abandonment of full employment in the macroeconomic story can cause economic policies to be more flexible. Policymakers may be more open to experimenting with new policies. For example, they could introduce policies that encourage entrepreneurship more aggressively. This is because the traditional link between full employment and economic stability is broken. So, they might look for new ways to boost economic dynamism that don't rely on the assumption of achieving full employment.

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3 answers
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3 answers
2024-12-12 19:33

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1 answer
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2 answers
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3 answers
2024-12-12 19:33

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2 answers
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3 answers
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