Figure 1.1 depicts Okun Misery Indexes (the sum of the inflation rate and unemployment rate) for the periods 1980-89, 1990-99 and 2000-2003 for several countries. The average misery index has fallen from 14.7 per cent in the 1980s to its recent value of 8.6 per cent. The average unemployment rate corresponding to these misery indexes increased from 7.3 to 8.3 per cent, and subsequently declined to 6.4 per cent in 2000-2003. 1 By implication, the weight of inflation in the index decreased from 50 per cent in the 1980s to about 25 per cent in recent times. Unemployment now constitutes by far the largest part of misery in the portrayed OECD countries.
Growth and Cohesion in the European Union : The Impact of Macroeconomic Policy p. 3-31