Extended unemployment benefits during recession raise joblessness, slow economic recovery.
The article explores how different economic policies affect unemployment and the economy. By analyzing data and using economic models, the researchers found that changes in unemployment benefits can impact joblessness rates. They also discovered that extending benefits during a recession can increase unemployment. Additionally, they found that unconventional monetary policies and fiscal expansions are effective in boosting the economy. When interest rates are near zero, fiscal policies are more effective in the short term.