This chapter explores the significance of the Somme Rule in predicting recessions through unemployment rates, tracing its origins and accuracy. It features the journey of its creator from humble beginnings to influential economist and discusses potential government responses to economic downturns.
On today’s Big Take podcast, economist Claudia Sahm explains the Sahm rule: how she came up with the idea, whether or not we’re in a recession, and why she wishes it was called something else.
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