Robert Waldmann commented on 'Federal Reserve Bank of Minneapolis Narayana...
Kocherlakota has to know that the way to detect missmatch is to compare hiring to expected hiring given unemployment and vacancies -- that is look at the matching function not the Beveridge curve. I...
View ArticleSimon van Norden commented on 'Federal Reserve Bank of Minneapolis Narayana...
I've read over the text of his speech and his comments on the matching function. The conclusion that "Most of the existing unemployment represents mismatch that is not readily amenable to monetary...
View ArticleNeal commented on 'Federal Reserve Bank of Minneapolis Narayana Kocherlatkota...
...manufacturing plants want to hire new workers.... Is he nuts? Is this the outlook of most of the Fed--that hiring is slow because they can't find people to hire? Just because there are anecdotes of...
View ArticleOmega Centauri commented on 'Federal Reserve Bank of Minneapolis Narayana...
"It doesn't help that corporations return to profitability has been fueled, in part, by off-shoring more blue and white collar jobs." To the extent that that statement is true, it would imply that we...
View Articlesave_the_rustbelt commented on 'Federal Reserve Bank of Minneapolis Narayana...
For the youngsters in the crowd, 1982 was pretty brutal. But 1982 was a church social compared to this mess. Underemployment is structural and unemployment is headed that way. Too many fantasies about...
View ArticleChris of Stumptown commented on 'Federal Reserve Bank of Minneapolis Narayana...
I agree with Kocherlakota that the US situation is structural. If you read his speech it may have seemed like it came out of thin air, but bear in mind that his address was to businesspeople about how...
View Articleanon commented on 'Federal Reserve Bank of Minneapolis Narayana Kocherlatkota...
I think they should have done the stimulus by sending checks to people who are not in the higher income brackets. They'll start spending more money probably before they even get the checks. Government...
View ArticleMin commented on 'Federal Reserve Bank of Minneapolis Narayana Kocherlatkota...
"There is no reason to think that the bulk of current unemployment is any sense "structural": if aggregate demand were higher it would melt away just as unemployment in 1982 melted away. "There is good...
View ArticleAndy Harless commented on 'Federal Reserve Bank of Minneapolis Narayana...
Actually, I think the problem is not that he's using an old model but that he's using one that's inappropriate for the question he wants to answer. He refers in a footnote to the Shimer model, which I...
View Articlejh commented on 'Federal Reserve Bank of Minneapolis Narayana Kocherlatkota...
That's not quite right. He's using that paper as a baseline. The model has unemployment, but doesn't attempt to model structural unemployment at all. (That is, it's not true that Shimer's model...
View ArticleJim Lund commented on 'Federal Reserve Bank of Minneapolis Narayana...
Structural unemployment isn't a great factor today, but... the most likely case is that the unemployment rate stays above 7% for the next two years, likely even longer (4 years?). Most likely, the US...
View ArticleAndy Harless commented on 'Federal Reserve Bank of Minneapolis Narayana...
As far as I can tell, Shimer models all unemployment as the result of mismatch, hence the title of the paper. (Whether you want to call that "structural" is a semantic question, but Kocherlakota seems...
View Articlejh commented on 'Federal Reserve Bank of Minneapolis Narayana Kocherlatkota...
When Kocherlakota writes about the "stable" relationship between 2000-2008, he's thinking about Shimer's model, as he makes clear in the note and the comparison he makes. Shimer's model allows for...
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