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The word recession, made from letters of a scrabble game, is seen in this illustration picture taken in on November 15, 2012.
The word recession, made from letters of a scrabble game, is seen in this illustration picture taken in on November 15, 2012.
(SRDJAN ZIVULOVIC/REUTERS)

Great Recession has spawned weak economic thinking

When economic times are bad, economists look for explanations. Some of them are helpful, and some are confused or wrong-headed.

The last five years of slow GDP growth and disappointingly high unemployment provide some examples of weak economic thinking. The annual gathering of central bankers at Jackson Hole, Wyoming this week is “re-evaluating” how the labor market works. Maybe another year, the assembly could do the same for some popular but flawed theories.