policies for unemployment (1 Viewer)

[vaniLLa_554]

what policies reduce/deal with unemployment?

 

[Freaky]

This is the type of question that i/most people could write an essay about.

But here is one simple solution:

Loose monetary policy --> Low interest rates --> More people have access to funds --> Increased Aggregate demand --> Emloyer's need to employ more workers to keep up with the high demand --> Reduction in unemployment.

 

[enigma~]

Don't forget that a govt can reduce unemployment through expenditure through its fiscal stance. Oh and microeconomic policies such as retraining workers...

 

[forceblade]

Don't forget that a govt can reduce unemployment through expenditure through its fiscal stance. Oh and microeconomic policies such as retraining workers...

i dont think microeconomics policy reduce unemployment, retrianing workers is still the same number of employment...on the contrast dont Micro create structural unemployment?

 

[mattchan]

Micro causes short term unemployment but in the long run, it is hoped structural unemployment will decrease as workers get training and skills to work in more efficient industries.

 

[vaniLLa_554]

Micro causes short term unemployment but in the long run, it is hoped structural unemployment will decrease as workers get training and skills to work in more efficient industries.

so if there was an essay on policies that reduce unemployment...
u would talk about microeconomic policies and how unemployment is reduced in the longer term

 

[Freaky]

I would talk about macro policies... they are much easier (to me at least)

 

[vaniLLa_554]

I would talk about macro policies... they are much easier (to me at least)

wouldnt it be better to talk about both micro and macro?

 

[Rafy]

wouldnt it be better to talk about both micro and macro?

yes.
Dont forget Labour market micro reforms.


Most economic policies will have an impact on unemployment, and that is always a consideration in their implementation. Although of course some policies are more targeted at unemployment than others

 

[Freaky]

wouldnt it be better to talk about both micro and macro?

Yes, but i would dedicate the majority of my essay to macro, then just mention micro in there somewhere...

Dont forget Labour market micro reforms.

Is labour market reform micro???
IE: Enterprise bargaining??
Is that micro??

 

[Jago]

yes, it is.

 

[adambra]

Micro lowers NAIRU.

 

[vaniLLa_554]

yes.
Dont forget Labour market micro reforms.


Most economic policies will have an impact on unemployment, and that is always a consideration in their implementation. Although of course some policies are more targeted at unemployment than others

yea that's true.. so how would u structure an essay on unemployment and policies?

 

[Jago]

definition
nature and extent
causes
effects
policies
limitations of policies
conclusion.

 

[adambra]

And trends.

 

[vaniLLa_554]

definition
nature and extent
causes
effects
policies
limitations of policies
conclusion.

how would you structure the policies section? thx

 

[Jago]

monetary, fiscal and then micro


and maybe throw NAIRU somewhere in the essay, and hysteresis just because i like that word.

 

[sunjet]

Fiscal - Expansionary, Initiaties such as Work for the Dole
Monetary - Loosening
Labour market - more flexible, keeps employment during times of low growth
Micro - efficient industries require more employment

 

[Jago]

you can also argue that an efficient industry would require less employment.

 

[vaniLLa_554]

Fiscal - Expansionary, Initiaties such as Work for the Dole
Monetary - Loosening
Labour market - more flexible, keeps employment during times of low growth
Micro - efficient industries require more employment

cool thanks!

you can also argue that an efficient industry would require less employment.

but efficient industries would create more employment in the longer term