According to a paper presented recently by David Blanchflower, the Bruce V. Rauner Professor of Economics at Dartmouth, unemployment makes people approximately four times as unhappy as inflation does, The New York Times reports.
Although central banks tend to give more weight to inflation, they have it backward, Blanchflower tells the Times.
“It makes sense for central bankers to target unemployment, given that unemployment hurts more than inflation does,” says Blanchflower. He based his research on surveys of Europeans between 1975 and 2012, a span of time that included high levels of unemployment and inflation.
Read the full story, published 4/12/13 by The New York Times.