Policies to control Un

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  • Govt. policies to cure Un
    • Appropriateness depends on identifying the underlying causes of Un
    • Using the wrong policy for a different cause can make Un worse
  • Previously thought to be supply-side causes (1990-2000). However, disagreement about appropriate policies since Keynesians thought to cause era of bad supply-side management; free-market econ think intervention should be ltd to ensure frictional AND structural and real-wage Un also cut
    • Govt. policies to cure Un
      • Appropriateness depends on identifying the underlying causes of Un
      • Using the wrong policy for a different cause can make Un worse

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