The Natural Rate of Unemployment Is a Freedmanite Innovation

The idea that unemployment never really goes to zero is a freedmanite innovation. It's also an idea associated with freedmen, but it has more staying power than monotorism. In the mid nineties, as unemployment approaches five %, janet yellen personally visits greenspan office and says they need to raise rates because economy's headed for 5%. So that's an idea that young, even ellen, is still thinking in the nineties. She's still thinking it. And i think since like 20 16, they've come much closer towards rejecting the idea at least through the second administration.