The impact of the higher unemployment is all the more stark because at the same time the basket of public goods that state provides is shrinking. These conditions are not associated political stability. Something is going to have to give and it is not something that can be addressed by the Outright Market Transaction scheme, operationalized or just threatened.
Here is a Great Graphic I found over at Sober Look. It is from the IMF and shows unemployment rates in different economic regions.
What Sober Look draws our attention to is the fact that the IMF projects euro area unemployment to be above the Middle East and Northern Africa. It will have the distinction of being the highest joblessness in the different geographic buckets that the IMF uses.
It is also noteworthy that the with the notable exception of Japan, which is already experiencing a declining population and workforce, the US unemployment rate will be lower than the other high and medium income countries, though still with plenty of slack. The US is one of the few countries that a faster decline in the unemployment is the express goal of current monetary policy.
This post was originally published at MarctoMarket and is reproduced here with permission.