Paul Krugman has been accused recently of being inconsistent with his own textbook on the issue of whether higher benefits for the unemployed raise or lower unemployment. His textbook explained the consensus view that such benefits can increase 'frictional' unemployment - or the natural rate of unemployment, by reducing the pressure on the unemployed to find work.
Share this post
At the ZLB, reducing unemployment benefits…
Share this post
Paul Krugman has been accused recently of being inconsistent with his own textbook on the issue of whether higher benefits for the unemployed raise or lower unemployment. His textbook explained the consensus view that such benefits can increase 'frictional' unemployment - or the natural rate of unemployment, by reducing the pressure on the unemployed to find work.