Macro Issues

One of the few reasonable arguments for the case that the US economy is near full employment, and that the Fed’s short term interest rate target should be lifted, is that the unemployment rate is low. Indeed, the jobless rate is fairly low from an historical perspective, but it is just one of many important indicators and doesn’t tell us enough about the state of the economy to fully inform monetary policy decisions. This is the conclusion one would be forced to draw even if one subscribed to the conventional, inflation targeting view, the view that we at NGDP Advisers…...

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