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An unstable Okun’s Law, not the best rule of thumb
Okun’s law is a statistical relationship between unemployment and GDP that is widely used as a rule of thumb for assessing the unemployment rate—why it might be at a certain level or where it might be headed, for example. Unfortunately, the Okun’s law relationship is not stable over time, which makes it potentially misleading as a rule of thumb.
Cite this item
Brent Meyer & Murat Tasci, "An unstable Okun’s Law, not the best rule of thumb"
, Federal Reserve Bank of Cleveland, Economic Commentary, issue June, 2012.
Keywords: Gross domestic product ; Unemployment
This item with handle RePEc:fip:fedcec:y:2012:i:june7:n:2012-8
is also listed on EconPapers
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