As central bankers gather for their annual conference in Jackson Hole, Wyoming, a top agenda item is evaluating the current and future amount of slack in the US economy. In this regard, they’d be well advised to check out this new study from the two economists at the Economic Policy Institute which provides an exhaustive… Read more
Over at PostEverything. I’ve now got both Bob Marley and Elsa singing about the importance of supporting wage growth as the recovery proceeds. What more do ya want?! Elsa won’t be at Jackson Hole, but Janet will.
There’s been of late an interesting outpouring of quality research on one of my favorite topics: the relationship between labor market slack and wage growth. I’ve got a longer piece on this coming out later, but the punchline is, as you probably know if you’re drawing a paycheck: considerable slack remains in the job market… Read more
Fed vice-chair Stan Fischer gave another interesting (and long!—dude, you don’t have to cover everything in each outing!) speech today wherein he continues to articulate the Fed’s state-of-the-art thinking on all the big issues (here’s an earlier post re Fischer on financial oversight). Just did this CNBC hit on it so let me summarize the point… Read more
Just a quick note re the Samuelson piece this AM suggesting that maybe the Fed should raise rates sooner than later. Or maybe not. Actually, all he seems to be saying here is: “maybe they should start fighting inflation now, or maybe they shouldn’t; we can’t really tell how much slack there is; but it… Read more