What is full employment? 10 potential answers

If the Fed was following a pure inflation targeting strategy, its reaction function would logically have led it to tighten policy. But in addition to the goal of "price stability", the Fed’s mandate also aims for "maximum employment". Is the US economy at full employment, and if not, is it far from it? Depending on the answer to this question, the timing of policy rate hikes may change. Unfortunately, there is no single definition of full employment. We propose hereafter ten ways...