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Several people convey asked me inwards recent days if the Fed's aggressive attempts to larn the economic scheme going volition Pb to galloping inflation to become along alongside our weak economical growth. It is possible that this mightiness occur downward the road, of course, but I don't run across it happening simply now. The slack task marketplace has kept increment inwards nominal reward low, too task represents a large fraction of a typical firm's costs. H5N1 persistent inflation occupation is unlikely to railroad train until task costs origin ascent significantly. Notice inwards the graph above that the menses of stagflation during the 1970s is good apparent inwards the nominal wage data. The same thing is non happening now. This is i argue I mean value the Fed is on the correct runway worrying to a greater extent than virtually the weak economic scheme than virtually inflationary threats. Sumber https://gregmankiw.blogspot.com/
