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- W2341293686 abstract "'The belief in a low and structurally stable equilibrium unemployment rate has survived longer in the Scandinavian countries than elsewhere in Europe. For example, a Norwegian governmental report estimated the equilibrium unemployment rate to be 2.8 percent in 1988. Fours years later, a second report revised this figure only modestly upward to 3.0 percent. This optimism was not universal, however, and several authors warned against the precarious nature of the Nordic low-unemployment equilibrium, pointing to such factors as accommodative policies and a delicately balanced gift-exchange between government and unions, i.e., acceptable wage policies in exchange for government commitment to full employment (see e.g. R~dseth, 1985; Calmfors and Nymoen, 1990; and Lindbeck, 1993). As we now know, events did eventually catch up with the Nordic countries, and in the same way as in the European economies a good decade ago, low and invariant NAIRUs appear to be increasingly implausible. In this respect at least, Sweden, Finland and Norway are not different from the rest of Europe. Forslund's paper is therefore a timely contribution. Indeed, there is obviously a strong demand for models that can encompass changes in equilibrium unemployment and that can produce estimates of the likely level and future development of equilibrium unemployment. Two approaches are currently enjoying popularity among economists interested in the empirical aspects of equilibrium unemployment: Phillipscurve natural-rate estimates (called NAIRU and NAWRU in Forslund's paper), and estimates based on the influential Layard-Nickel1 model." @default.
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- W2341293686 title "Comment on Anders Forslund: Unemployment - Is Sweden Still Different?" @default.
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