We examine the effect of a federally-funded local infrastructure spending program on local unemployment rates. To … government expenditure on roads substantially reduces local unemployment. …

, under the current mandate the U.S. has experienced low inflation and low unemployment, while many inflation …-targeting countries have experienced double-digit unemployment. Second, the costs of unemployment are substantial while the costs of …, if the price level is not free to adjust, an adverse supply shock can cause large increases in unemployment. …