Should-Read: Ned Phelps: Nothing Natural About the Natura...

Should-Read: Ned Phelps: Nothing Natural About the Natural Rate of Unemployment: "A compelling hypothesis is that workers, shaken by the 2008 financial crisis and the deep recession that resulted...

...have grown afraid to demand promotions or to search for better-paying employers���despite the ease of finding work in the recently tight labor market. A corollary hypothesis is that employers, disturbed by the extremely slow growth of productivity, especially in the past ten years, have grown leery of granting pay raises���despite the return of demand to pre-crisis proportions.... This does not mean there is no natural unemployment rate, only that there is nothing natural about it. There never was.