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The inflation-adjusted Phillips curve predicts not just deflation, but accelerating deflation in the face of a really prolonged economic slump.
Mysteries Of Deflation (Wonkish)
Seeded on Mon Jul 26, 2010 3:02 PM EDT
Article Source: The New York Times- Enjoy this article? Help vote it up the 'Vine.
- Public Discussion (3)
'Picture America in, oh, 2014: unemployment is still around 9 percent, prices are falling about 1 percent a year. Many economists might look at that situation and say, well, deflation is stable, not accelerating, so we must be at the natural rate of unemployment — move along, folks, nothing to see here.'
'So it’s time to start focusing on downward rigidity and what it implies. After all, all indications are that we’re going to be dealing with a depressed economy for a long time to come.'
- 2 votes
#1 - Mon Jul 26, 2010 3:03 PM EDTYou're in Easy Mode. If you prefer, you can use XHTML Mode instead. |
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