Karanassou, Marika (contributor); Sala, Hector (contributor) - 2006
frictionless equilibrium view; (ii) the chain reaction theory, or prolonged adjustment view; and (iii) the hysteresis view. While … in unemployment: (i) the frictionless equilibrium view; (ii) the chain reaction
theory, or prolonged adjustment view … theory (CRT) of unem-
ployment,
2
in which the labor market adjusts only slowly to external shocks. The
reason is that many …