Re: Lower unemployment rate= higher inflation
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I can tell I'm going to get pounded on this one, but for people who know what I'm talking about and know about economics, how many of you agree with the statment that a low unemployment rate = higher inflation, and thus having unemployment at about 3-5% is actually good for the economy.
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I don't think any mainstream economist believes this anymore.
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Um. Wow. If by mainstream you mean ignorant, then yes, you are right.
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It is, at best, a short run effect. Bobman was correct in statement in that both theoreticl and empirical work has shown the long run Phillips curve to be incorrect.
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Then I need to do some new reading.
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