Must-Watch: Really, really bad news for the American economy. Alan Krueger concludes that we are now near "full employment" in a monetary policy-Federal Reserve-inflation sense. The implications? The implications are:
- that the failure of the government and the Federal Reserve to more aggressively boost recovery has turned what was excess cyclical non-employment into structural non-employment,
- that essentially none of the drop in production relative to the pre-2008 trend can or will be recouped without noticeably higher inflation.
Labor Force Participation: <(https://vimeo.com/134932856)>::
Via Mark Thoma.