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Thursday, May 24, 2012

A mechanism that could address structural unemployment problem

It’s impossible to know precisely how much unemployment is structural and how much is cyclical, and probably there’s some of both right now. Cyclical unemployment resulting from weak demand is amenable to expansionary government spending or monetary policy. Structural unemployment is harder to fix. Structural joblessness results from things like skills mismatches, and policy to address such mismatches is inherently longer-term in scope, involving education and encouraging innovation. Expansionary policy can't reduce structural unemployment; when that's all that's left, more expansion generates nothing but rising inflation.
click here to view full economist article is more than a policy, but a mechanism that could address structural unemployment problem in the world presently 


  1. Good views/analysis. Nigeria is facing both sides of the coin.

  2. yeah, this is a possible solution to the secondary side


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