Feb 20th 2012, 14:40 by R.A. | WASHINGTON
VIA Modeled Behavior, I see that Arnold Kling has written a post which reads:
Mainstream macro in the 1970s (which a lot of people seem to have gone back to) held that there was a NAIRU, meaning the non-accelerating inflation rate of unemployment. If unemployment was above that, inflation would fall. If it was below that, inflation would increase. So, policy should shoot for the NAIRU.
These days, unemployment is 8.3 percent, and inflation is increasing. Just sayin’.
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