nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2012‒10‒13
two papers chosen by
Karl Petrick
University of the West Indies

  1. The Problem with Structural Unemployment in the U.S. By Dean Baker
  2. Venezuela's Economic Recovery: Is It Sustainable? By Jake Johnston; Mark Weisbrot

  1. By: Dean Baker
    Abstract: Following the most recent recession, an attempt has been made to explain current levels of unemployment as resulting from structural unemployment, or a mismatch between the skills of the unemployed and the types of jobs available. The evidence, however, indicates that the issue is actually a lack of aggregate demand. Since accepting one of these views over the other will lead to very different policy solutions, it is important to accurately assess the cause of unemployment. This issue brief finds that the evidence is overwhelming consistent with the view that a lack of demand, caused by the collapse of the housing bubble is at the root of U.S. unemployment. in this context, measures that focus on improving skills - a remedy for structural unemployment - will have little effect on overall employment.
    Keywords: unemployment, politics, structural unemployment
    JEL: J J0 J01 J08 J2 J21 J22 J23 J6 J64 J68
    Date: 2012–10
  2. By: Jake Johnston; Mark Weisbrot
    Abstract: Venezuela’s current growth is generally described as unsustainable, with various negative scenarios put forth, including spiraling debt, inflation, and balance of payments crises. However, these pessimistic forecasts have been far off the mark for most of the past decade. This paper looks at the available economic data to see if Venezuela’s economic recovery could be sustained, or even accelerated. It finds that Venezuela’s current economic growth is sustainable and could continue at the current pace or higher for many years.
    Keywords: Venezuela,economy,growth,macroeconomics,elections,recession, external debt
    JEL: F F1 F2 F3 F33 F34 I I1 I12 I18 O O4 O47 O5 O54 O57 E E6 E5 E52 E58 E52
    Date: 2012–09

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