This paper analyses deviations from full employment in EU countries, compared with the US and the UK. We apply the Beveridge (full-employment-consistent) rate of unemployment (BECRU), derived from the unemployment-vacancies relationship. The BECRU is the level of unemployment that minimises the...

For the last few decades, monetary policy has been geared toward raising the unemployment rate as a means of achieving stable prices. However, it is possible to have stable prices as well as full employment, via a federal public service employment (PSE) program that provides jobs for those...