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Benton D Struckcheon

(2,347 posts)

14. I've been thinking about this since yesterday, and it reminds me of Friedman's NAIRU

Reply to xchrom (Original post)

Wed Apr 17, 2013, 09:24 AM

Apr 2013

which stands for the Non Accelerating Inflation Rate of Unemployment. Means that once unemployment drops below some number, inflation accelerates. The Fed, among others, believes heavily in this crap.
Which is what it is. Running the numbers for this is trivial. I did it once. Not only was there no rate I could find where if unemployment fell below it inflation would accelerate, it actually was mildly the other way, to the extent there was any relationship at all.
But it's still taken seriously.

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How much unemployment did Reinhart and Rogoff's arithmetic mistake cause? [View all] xchrom Apr 2013 OP

Recommend KoKo Apr 2013 #1

None. dawg Apr 2013 #2

Bingo. Scuba Apr 2013 #4

+1 MannyGoldstein Apr 2013 #5

yep caraher Apr 2013 #16

kr. though i think the ptb would have found ways to do what they wanted to regardless. HiPointDem Apr 2013 #3

They look like a a couple of seriously un-fun people MindPilot Apr 2013 #6

Her husband is chief economist for Morgan Stanley. jsr Apr 2013 #21

excellent piece Buffalo Bull Apr 2013 #7

Was it a mistake then? House of Roberts Apr 2013 #8

They didn't select all the fields in an excel spreadsheet Paulie Apr 2013 #13

I wonder if they already cast the parts for BeetleJuice 2? Baitball Blogger Apr 2013 #9

conservatives--bad at science and now bad at math dembotoz Apr 2013 #10

Probably none n2doc Apr 2013 #11

Was the error deliberate?? n/t malaise Apr 2013 #12

Minor clerical error jsr Apr 2013 #20

I've been thinking about this since yesterday, and it reminds me of Friedman's NAIRU Benton D Struckcheon Apr 2013 #14

Capitalists need unemployment to keep the workers compliant. In our near monopoly system, byeya Apr 2013 #15

I know that's the whole purpose of NAIRU, Benton D Struckcheon Apr 2013 #19

Yes, I just tried my best to amplify what you wrote. Hayak/Friedman paid no attention, seemingly, to byeya Apr 2013 #23

Baker omits his own observation from 2010 caraher Apr 2013 #17

Bingo...they don't care. zeemike Apr 2013 #22

Dean Baker, to me, is an example of an economist with ethics. Smart and courageous man. byeya Apr 2013 #24

Yep caraher Apr 2013 #26

Living life by the spreadsheet is an error in itself. Cleita Apr 2013 #18

k&r and thanks for posting rhett o rick Apr 2013 #25