Tekijä(t): Böckerman Petri
Market economies are in a state of continuous turbulence. Each year, on the one hand, many businesses expand (and succeed), while, on the other hand, many others contract (and fail). Joseph A. Schumpeter (1942) called this process by the pithy expression “creative destruction”. The view that recessions revitalize the economy was indeed prominent in pre-Keynesian economics (see, for example, De Long 1990). It is fair to say that the reallocation and the reorganisation of resources culminates in the function of labour markets, where the reallocation of resources takes the form of gross job flows.