High unemployment has been one of the most disturbing features of the economy of the 1980s. For a precedent, one must look to the interwar period and in particular to the Great Depression of the 1930s. It follows that recent years have been marked by a resurgence of interest amongst academics in interwar unemployment. The debate has been contentious. There is nothing like the analysis of a period which recorded rates of un employment approaching 25 per cent to highlight the differences between competing schools of thought on the operation of labour markets. Along with historians, economists...