An unstable Okun’s Law, not the best rule of thumb

Brent Meyer and Murat Tasci

Economic Commentary, 2012, issue June

Abstract: Okun?s law is a statistical relationship between unemployment and GDP that is widely used as a rule of thumb for assessing the unemployment rate?why it might be at a certain level or where it might be headed, for example. Unfortunately, the Okun?s law relationship is not stable over time, which makes it potentially misleading as a rule of thumb.

Keywords: Unemployment; Gross domestic product (search for similar items in EconPapers)
Date: 2012
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