On December 12, 2019, Fed in Print will introduce its new platform for discovering content. Please direct your questions to Anna Oates

Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Cleveland
Economic Commentary
An unstable Okun’s Law, not the best rule of thumb
Brent Meyer
Murat Tasci

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.

Download Full text
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.
More from this series
JEL Classification:
Subject headings:
Keywords: Gross domestic product ; Unemployment
For corrections, contact 4D Library ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal