“Understanding the Greenspan Standard”, paper presented at the Federal Reserve Bank of Kansas City Symposium “The Greenspan Era: Lessons for the Future”, Jackson Hole, Wyoming, August 25-27. - Evans, G. and Honkapohja, S. (2001). Learning and Expectations in Macroeconomics, Princeton: Princeton University Press. - Greenspan, A. (2003).
If labor force participation was to remain flat, job gains in the range of 125,000 to 175,000 would likely be needed to prevent unemployment from creeping up. However, if labor force participation was to decline, as might be expected given demographic trends, the neutral rate of payroll gains would be lower.