05/06/2013

"The potential growth and structural unemployment in Spain, EMU and the US". Presentation by Rafael Doménech

Many estimates of structural unemployment are very procyclical 

In most cases, these procyclicality of structural unemployment is the main cause of the procyclicality of potential growth 

On this respect, the evidence for the Spanish structural unemployment rate estimated by European Commission is a clear example

This procyclicality affects the estimation of important gaps in policy making as, for example, the cyclical component of budget balance