What Paul Krugman Says...

PK:

Structural Problems, Not Structural Unemployment: Maxine Udall responds to my writing about structural unemployment and the absence thereof by arguing that the US economy probably does have some major structural problems. She’s right, of course — but there’s no contradiction between arguing that structural unemployment has very little to do with the sharp rise over the past three years, and arguing that the economy was badly distorted even in 2007. To be fair, Udall seems to get that; but others might not...