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yangusbeef

http://www.ars-regendi.com/rid102093/sta...-iranikrak


How can I have 6% inflation, 8% real growth, 0 net migration, yet unemployment rises? That contradicts the logical relationship.
Dutch disease?

The extreme export profitability of some natural resource may create the situation where the number of jobs created around the extraction and transportation of the aforementioned resource is lower than the number of jobs that is lost due to the decline in more labor intensive manufacturing and agriculture sectors. These sectors decline because they become increasingly uncompetitive due to the strengthening currency and the continuous drift of the good specialists into the much more profitable natural resource extraction sector.

yangusbeef

Lord Alexander Wrote:
Dutch disease?

The extreme export profitability of some natural resource may create the situation where the number of jobs created around the extraction and transportation of the aforementioned resource is lower than the number of jobs that is lost due to the decline in more labor intensive manufacturing and agriculture sectors. These sectors decline because they become increasingly uncompetitive due to the strengthening currency and the continuous drift of the good specialists into the much more profitable natural resource extraction sector.


That is a plausible theory, but society's exports have barely increased while imports have increased relatively quicker. Coupled with low wage growth, this singles an emerging industrial economy - not a lack thereof. Although, the strong currency definitely matches, perhaps you are correct.

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