Reducing Unemployment: A Case for Government Deregulation

Synopsis

Unemployment costs the United States billions of dollars per year in lost output and social problems. The United States cannot afford to ignore unemployment in its pursuit of stable prices. The authors take a careful look at the nonaccelerating inflation rate of unemployment (NAIRU) in an effort to understand how we can achieve a low-unemployment economy without serious inflation. The conclusion is that we can achieve such an economy by pursuing government deregulation.