Prior to the late 1990s, low unemployment was a standard feature of macroeconomic life in Hong Kong. Between 1985 and … 1997, the unemployment rate averaged 2.5 percent. But the picture changed dramatically thereafter with the unemployment … analyzed in two ways. First, a set of comparative statics exercises investigates whether the natural rate of unemployment …

the unemployment rate in booms and expansions, as they heavily affect the autocorrelation of aggregate consumption and the …