Question A:
The concept of “maximum sustainable employment” is well defined enough to be used beneficially in economic policymaking.
Responses
© 2025. Kent A. Clark Center for Global Markets.
12%
7%
0%
17%
24%
38%
2%
Responses weighted by each expert's confidence
© 2025. Kent A. Clark Center for Global Markets.
0%
22%
23%
50%
5%
Question B:
Right now the US economy is operating below maximum sustainable employment.
Responses
© 2025. Kent A. Clark Center for Global Markets.
12%
17%
0%
12%
38%
17%
5%
Responses weighted by each expert's confidence
© 2025. Kent A. Clark Center for Global Markets.
0%
20%
48%
21%
10%
Question A Participant Responses
Participant |
University |
Vote |
Confidence |
Bio/Vote History |
|---|---|---|---|---|
 Daron Acemoglu |
MIT | Bio/Vote History | ||
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I don't think it's well defined. Lots of policies and institutions affect employment. Which one is "sustainable"? Does it mean efficient?
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 Alberto Alesina |
Harvard | Bio/Vote History | ||
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 Joseph Altonji |
Yale | Bio/Vote History | ||
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 Alan Auerbach |
Berkeley | Bio/Vote History | ||
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 David Autor |
MIT | Bio/Vote History | ||
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Emphasis on "well defined enough" -- meaning that it's not precisely defined, but still approximately useful.
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 Katherine Baicker |
University of Chicago | Bio/Vote History | ||
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 Abhijit Banerjee |
MIT | Bio/Vote History | ||
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 Marianne Bertrand |
Chicago | Bio/Vote History | ||
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 Markus Brunnermeier |
Princeton | Bio/Vote History | ||
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 Raj Chetty |
Harvard | Did Not Answer | Bio/Vote History | |
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 Judith Chevalier |
Yale | Bio/Vote History | ||
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 David Cutler |
Harvard | Bio/Vote History | ||
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 Angus Deaton |
Princeton | Bio/Vote History | ||
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 Darrell Duffie |
Stanford | Bio/Vote History | ||
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 Aaron Edlin |
Berkeley | Did Not Answer | Bio/Vote History | |
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 Barry Eichengreen |
Berkeley | Bio/Vote History | ||
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 Liran Einav |
Stanford | Bio/Vote History | ||
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 Ray Fair |
Yale | Bio/Vote History | ||
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 Amy Finkelstein |
MIT | Bio/Vote History | ||
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 Pinelopi Goldberg |
Yale | Did Not Answer | Bio/Vote History | |
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 Austan Goolsbee |
Chicago | Bio/Vote History | ||
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 Michael Greenstone |
University of Chicago | Bio/Vote History | ||
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 Robert Hall |
Stanford | Bio/Vote History | ||
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Certainly not if it is interpreted as a fixed u*. We now know that unemployment dynamics following a major shock are complicated.
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 Oliver Hart |
Harvard | Bio/Vote History | ||
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 Bengt Holmström |
MIT | Bio/Vote History | ||
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 Caroline Hoxby |
Stanford | Bio/Vote History | ||
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As a labor and microeconomist, I find "maximum sustainable employment" to be only loosely grounded in economic reasoning.
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 Hilary Hoynes |
Berkeley | Bio/Vote History | ||
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 Kenneth Judd |
Stanford | Bio/Vote History | ||
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The traditional measurement is unemployment rate. The ratio of employment to population depends on demographics as much as economic health.
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 Steven Kaplan |
Chicago Booth | Bio/Vote History | ||
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 Anil Kashyap |
Chicago Booth | Bio/Vote History | ||
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in times like january 2009 it is obviously not true so having that in the Fed mandate helps, complicates times like now.
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 Pete Klenow |
Stanford | Bio/Vote History | ||
 Jonathan Levin |
Stanford | Did Not Answer | Bio/Vote History | |
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 Eric Maskin |
Harvard | Bio/Vote History | ||
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 William Nordhaus |
Yale | Bio/Vote History | ||
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How else can the Fed understand the dual mandate?
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 Emmanuel Saez |
Berkeley | Bio/Vote History | ||
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 Larry Samuelson |
Yale | Bio/Vote History | ||
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Coming to a precise numbers is always difficult, but the concept is quite useful in thinking about our economy.
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 José Scheinkman |
Columbia University | Bio/Vote History | ||
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enough is the operative word
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 Richard Schmalensee |
MIT | Bio/Vote History | ||
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Not sure it is very useful at all times, though.
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 Carl Shapiro |
Berkeley | Did Not Answer | Bio/Vote History | |
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 Robert Shimer |
University of Chicago | Bio/Vote History | ||
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 Richard Thaler |
Chicago Booth | Bio/Vote History | ||
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The concept is clear enough but who knows how to measure it?
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 Christopher Udry |
Northwestern | Bio/Vote History | ||
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Question B Participant Responses
Participant |
University |
Vote |
Confidence |
Bio/Vote History |
|---|---|---|---|---|
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Daron Acemoglu |
MIT | Bio/Vote History | ||
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The concept doesn't make sense. But of course we have policy options to increase efficiency in the labor market and employment. Lots of them
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Alberto Alesina |
Harvard | Bio/Vote History | ||
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Joseph Altonji |
Yale | Bio/Vote History | ||
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Alan Auerbach |
Berkeley | Bio/Vote History | ||
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David Autor |
MIT | Bio/Vote History | ||
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Unemployment is down, which is great, but labor force participation still has a lot of headroom to rise.
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Katherine Baicker |
University of Chicago | Bio/Vote History | ||
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Abhijit Banerjee |
MIT | Bio/Vote History | ||
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Marianne Bertrand |
Chicago | Bio/Vote History | ||
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Markus Brunnermeier |
Princeton | Bio/Vote History | ||
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Raj Chetty |
Harvard | Did Not Answer | Bio/Vote History | |
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Judith Chevalier |
Yale | Bio/Vote History | ||
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David Cutler |
Harvard | Bio/Vote History | ||
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Angus Deaton |
Princeton | Bio/Vote History | ||
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Darrell Duffie |
Stanford | Bio/Vote History | ||
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Aaron Edlin |
Berkeley | Did Not Answer | Bio/Vote History | |
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Barry Eichengreen |
Berkeley | Bio/Vote History | ||
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Debate continues about whether currently discouraged workers are permanently discouraged, but I think views are converging.
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Liran Einav |
Stanford | Bio/Vote History | ||
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Ray Fair |
Yale | Bio/Vote History | ||
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Given that I disagree regarding the first question, the second question is not meaningful.
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Amy Finkelstein |
MIT | Bio/Vote History | ||
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Pinelopi Goldberg |
Yale | Did Not Answer | Bio/Vote History | |
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Austan Goolsbee |
Chicago | Bio/Vote History | ||
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Michael Greenstone |
University of Chicago | Bio/Vote History | ||
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Robert Hall |
Stanford | Bio/Vote History | ||
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Until the next shock occurs, unemployment will continue to drift downward. The u rate in 1999 in MSP was 0.9 percent without dysfunction.
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Oliver Hart |
Harvard | Bio/Vote History | ||
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Bengt Holmström |
MIT | Bio/Vote History | ||
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Caroline Hoxby |
Stanford | Bio/Vote History | ||
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Having said that "maximum sustainable employment" is only loosely grounded in economics, I obviously cannot say whether we are at it or not.
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Hilary Hoynes |
Berkeley | Bio/Vote History | ||
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Kenneth Judd |
Stanford | Bio/Vote History | ||
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The last time we had sustained unemployment rate below 4% was 66-69, the peak of the Viet Nam war.
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Steven Kaplan |
Chicago Booth | Bio/Vote History | ||
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Labor force participation, particularly for men, could be higher.
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Anil Kashyap |
Chicago Booth | Bio/Vote History | ||
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maybe, but if i had to bet we are about there.
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Pete Klenow |
Stanford | Bio/Vote History | ||
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Jonathan Levin |
Stanford | Did Not Answer | Bio/Vote History | |
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Eric Maskin |
Harvard | Bio/Vote History | ||
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William Nordhaus |
Yale | Bio/Vote History | ||
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Probably above, perhaps at, but clearly not below by Fed’s own estimates.
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Emmanuel Saez |
Berkeley | Bio/Vote History | ||
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Larry Samuelson |
Yale | Bio/Vote History | ||
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We might aspire to a higher labor force participation rate, but there is little evidence we can push the unemployment rates markedly lower.
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José Scheinkman |
Columbia University | Bio/Vote History | ||
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Richard Schmalensee |
MIT | Bio/Vote History | ||
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Different indicators seem to be sending mixed signals.
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Carl Shapiro |
Berkeley | Did Not Answer | Bio/Vote History | |
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Robert Shimer |
University of Chicago | Bio/Vote History | ||
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Richard Thaler |
Chicago Booth | Bio/Vote History | ||
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labor force participation rate down and little wage pressure suggests room to grow the labor force.
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Christopher Udry |
Northwestern | Bio/Vote History | ||
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