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ProfessorGAC

(65,076 posts)

8. Again, Scant Evidence

Reply to applegrove (Reply #7)

Wed Dec 2, 2020, 11:22 AM

Dec 2020

I agree that's what they did. And if inflation is runaway, that would be useful.
But, the math suggests that increasing rates had a minimal effect comparex to the per worker productivity gains in the mid 70s to late 80s.
The volcker fed liked to take credit for tamping down inflation and a few right wing economists still credit him.
But, the econometric evidence is marginal.

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9 replies

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Would basic income instead reduce the inflation union wage rises would [View all] applegrove Dec 2020 OP

I see the savings from administrative costs as a big plus. Mopar151 Dec 2020 #1

Yes. That goes without saying. applegrove Dec 2020 #2

The Threshold for side money needs to be high. Mopar151 Dec 2020 #3

Wages have lagged far below increases in Voltaire2 Dec 2020 #4

Not Sure There's Evidence That... ProfessorGAC Dec 2020 #5

indeed. Voltaire2 Dec 2020 #6

When wages were going up and inflation, government used to up interest applegrove Dec 2020 #7

Again, Scant Evidence ProfessorGAC Dec 2020 #8

Since we are in a depression we have to worry about deflation not inflation. Demsrule86 Dec 2020 #9