This is a fantasy that needs to be exposed once and for all and banished from the textbooks once and for all, and indeed from public discourse more generally, particularly by economists.Econospeak
The Natural Rate Does Not Equal NAIRU: A ReminderJ. Barkley Rosser | Professor of Economics and Business Administration James Madison University
2 comments:
Excellent commentary by Rosser on a critical issue.
When will left-leaning economists get on the 'natural rate' bandwagon? It works great to fool people into believing the rate's level is God-given.
Maybe we should start advertising a 'natural rate of inflation" concept, the rate of inflation at which you achieve full-employment and below which unemployment begins to rise.
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