Wednesday, January 14, 2009

Theorem: We Have Gotten Better At Macro

PROOF:
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.