Answers are grounded in this paper and cite their sources.
An analysis of the performance of GDP, employment, and other labor market variables following the troughs in postwar U.S. business cycles points to much slower recoveries in the three most recent episodes, but does not reveal any significant change over time in the relation between GDP and employment. This leads us to characterize the last three episodes as slow recoveries, as opposed to jobless recoveries. We use the estimated New Keynesian model in Galí, Smets, and Wouters (2011) to provide a structural interpretation for the slower recoveries since the early nineties.
No takes yet. Share an insight, caveat, or question.
Gaĺı et al. (2012) studied this question.
Synapse has enriched 10 related papers. Consider them for comparative context: