Wednesday, January 14, 2009

Theorem: We Have Gotten Better At Macro

Seems like we've learned something about stabilization policy, doesn't it? Yes, the trend is slightly down because the labour market has become more rigid over time for a number of reasons (I lead with the proliferation of company-specific benefits), but the decrease in the variance is pretty good, isn't it?

Image blatantly stolen from Econbrowser.