determination of unemployment and wages in Germany and the U.K. Underlying this proposition is the notion that capital accumulation … dramatic rise in unemployment in the 1980s was attributed to adverse supply shocks. However, after the reversal of the shocks …, unemployment persisted which some economists explained by resorting to inflexibilities in the labor markets. It is worth noting …

The persistence of high unemployment has been one of the most puzzling developments of the past twenty years or so. In … the UK, unemployment averaged 2.1% between 1966 and 1973, and since 1974 it has risen to an average of 7.5%. The … prevailing view of the persistence of unemployment and of the continuous rise in the NAIRU is that explanations and solutions can …