About the product
This study analyzes the link between inflation and unemployment as it presents a summary of facts comparing western Europe with the United States and Japan. It provides the different explanations on why unemployment was so high in the 1980s and looks into 'demand deficiency' unemployment. It also describes the factors within national economies which limit the scope of macroeconomic policy and further constraints imposed by the balance of payments and other external factors, including the international monetary regime in operation. A brief discussion on developments in what used to be the former Soviet block and their possible impact on western Europe is provided.