Long Boom Benefits

Long Boom Benefits

Introduction

There are costs from reform as well as benefits. In addition to structural adjustment costs, it is possible that there has been a longer-term cost from higher unemployment. Whether this is or is not the case, it is consistent with the overall pattern of higher productivity growth coupled with a slower than normal reduction in unemployment during the long boom of the 1940s.

Discussion

If we take a look at the economy during Clinton's presidency, it will show that keeping with the democratic beliefs unemployment is kept low, but inflation is also low which is quite unusual. This happens ...