Policy Brief 4: Setting an Employment Target - Some Considerations

Employment targeting is not an alternative to “inflation targeting” in the sense that it is not a pendular swing away from the importance of macroeconomic stability. There is a difference between the two : the latter assumes implicitly that sound “macroeconomic fundamentals” are not merely necessary, but sufficient for generating output growth and, by extension, employment growth ; the former assumes that the era of “market fundamentalism” which has characterized the past quarter century has been insufficient in generating an adequate number of jobs for all those who want to work.