Archive for the ‘Full Employment’ Category

Benefits of full emp: wages pressures and maybe even a full-employment-productivity multiplier

December 18th, 2015

Over at WaPo. The wage part of the story I show, lifted from a piece in WSJ about Lincoln, NE, where unemployment is 2.3%, is a familiar one, though the magnitude of the growth rate is pretty striking. But the productivity part is, of course, trickier (“of course” because I don’t think economists really know… Read more

Looks like the Chinese yuan is about to get added to the IMF’s SDR’s. Why that’s good news.

November 30th, 2015

The IMF votes today to decide whether to add the Chinese currency, called both the yuan and the renminbi, to its basket of four other currencies that make up its SDRs–special drawing rights. All signs are that the yuan will get the nod and jump into the basket alongside the US greenback, UK pound sterling,… Read more

Quick note on the use of “natural rates” in macro analysis

November 24th, 2015

In yesterday’s post on underemployment, I employed various concepts used by many in high places in contemporary economic analysis, including “natural rates” of un- and underemployment–i.e., the lowest rates consistent with stable inflation–the “equilibrium” Fed funds rate–the one consistent with stable growth that’s neither too hot nor too cold–and so on. Some readers and Tweeters… Read more