Why has the current recovery from the Great Recession been so mediocre? Ed Leamer of UCLA points out that the last three recessions have all had mediocre recoveries of both output and employment. His explanation is that changes in the manufacturing sector have changed the pattern of layoffs, recalls and hiring during recessions and recoveries. The conversation concludes with a discussion of the forces driving the changes in the labor market and the implications for manufacturing.
Previous Episodes with John Taylor on the Economic Recovery:
Part 1 -- http://www.youtube.com/watch?v=1eCYq2vD5GY
Part 2 -- http://www.youtube.com/watch?v=ooUbohNneCQ
Part 3 -- http://www.youtube.com/watch?v=oLOH2d_p7_E