Would the Fed be able to implement them?

The article The Great Mismatch from The Economist (September 10 2011) reported that the natural r Show more The article The Great Mismatch from The Economist (September 10 2011) reported that the natural rate of unemployment in the United States may have risen as high as 7.5%. The article suggested that Lowering this new natural rate of unemployment will require structural reforms such as changing education to ensure that people enter work equipped with the sort of skills firms are willing to fight over adjusting the tax system and modernising the welfare safety net and more broadly creating a climate conducive to entrepreneurship and innovation. None of these reforms is easy and all will take time to produce results but governments around the world should press ahead with them. Why should policymakers be concerned with lowering the natural rate of unemployment? How would the structural reforms listed in the article contribute to lowering the natural rate of unemployment? Would the Fed be able to implement them? Briefly explain Show less

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