Friday, May 25, 2012
President Kocherlakota thinks full employment is near. Really?
I guess the idea here is that long-run equilibrium full employment has changed recently after what we have been through so that 8% unemployment is all we are going to get. Since prices seem to be rising now, the president of the Minneapolis Fed seems to think we are closing in on a new NAIRU target. And if that is true...how did you like the recovery? http://blogs.wsj.com/economics/2012/05/23/feds-kocherlakota-economy-closer-to-maximum-employment-than-data-suggest/?mod=WSJBlog