Paul K makes a cogent point re my post on Fed chair Janet Yellen’s explanation for recent wage trends. Many of us, including Chair Yellen herself, take the fact that nominal wage growth has been stable for years now at around 2%–about the rate of inflation, implying flat real wage growth–as evidence that considerable slack remains… Read more
I yield to no one in my admiration for the careful, thoughtful, and reality-based economics practiced by Fed Chair Janet Yellen. So I was taken aback a bit by a section in her Jackson Hole speech on Friday. It was the part where she gave a number of reasons why the absence of wage pressures… Read more
I review the Fed chair’s Jackson Hole speech from earlier this AM, over at PostEverything. It’s–appropriately–a lot of “on the one hand, this…on the other hand, that.” And while no one should deify the Fed chair, that does bring the following image to mind: At times when the data are ambiguous, this Goddess would make… Read more
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.