"If you want to create economic incentives for people to move into the expanding sectors where we actually need more workers, their wages have to go up,”
The "concern" of the inflation hawks is wages rising faster than prices. Do your replies address the issue of whether Fed policy has given/will have given us more inflation than necessary to allow relative prices to adjust to the structural changes you point out?
[What I HATE HATE HATE is El Erian, Summers et al not conditioning there outlooks on Fed instrument settings, on the Fed's reaction function to the very factors that they are pointing to. Summers is the "worst" becasue he's the one who should most know better. I know that it is in part that they are talking TO the Fed, but it ill serves public economic understanding.]
"If you want to create economic incentives for people to move into the expanding sectors where we actually need more workers, their wages have to go up,”
The "concern" of the inflation hawks is wages rising faster than prices. Do your replies address the issue of whether Fed policy has given/will have given us more inflation than necessary to allow relative prices to adjust to the structural changes you point out?
[What I HATE HATE HATE is El Erian, Summers et al not conditioning there outlooks on Fed instrument settings, on the Fed's reaction function to the very factors that they are pointing to. Summers is the "worst" becasue he's the one who should most know better. I know that it is in part that they are talking TO the Fed, but it ill serves public economic understanding.]