They also believe that unusually large layoffs and subsequent rehiring in the face of the shock could explain the deviation from Okun’s rule of thumb. Accordingly, they tend to recommend measures to jump-start aggregate demand, which would enable the economy to return to its pre-Crisis trajectory in a relatively short time.
The problem with such a view is that reality is beginning to work against it. In particular, the speed of the recovery has remained very slow, and is not expected to accelerate anytime soon. The economy is not rebounding as rapidly as in previous business cycles.