Nominal GDP and employment

posted by
January 26, 2012
by Arnold Kling  
Posted in Commentary

"As long as inflation and productivity growth are close to trend, or as long as the product of the two is close to trend, the relationship between nominal GDP and employment will be close to trend. This leads me to expect to find that when nominal GDP growth is low, employment growth is also low. You would only not get that if there were a big surge in inflation and/or a big surge in productivity." (01/25/12)  


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