Bernanke’s
argument that he can push demand harder to reduce unemployment is based on the notion
that unemployment is more cyclical than structural. Unfortunately that seems
like a bad bet given the evidence. The greatest bulge in unemployment in this
cycle is from not-temporary unemployment instead of from temporary unemployment.
And that category’s contribution to the unemployment rate is larger than in
this expansion at this point than in any previous expansion at the 32-month
mark since at least the 1970s. Ben seems
to be rolling the dice on a bad bet. But it’s a bet that gives him a rationale
for postponing tightening which is what his Great Depression lesson tells him
to do. Right now all we really know is the ‘what’ of his policy ‘not the ‘why.’
this is the teaser text for My Zero Hedge article and below it, the table that explains the data discussed in the body of that article.
Go here ( LINK BELOW) to see the article that explains why these data undermine Bernanke's case for saying unemployment is mostly cyclical.
2 comments:
What is it with the QE's. Money printing never did and never will solve serious economic problems. What we need are real solutions to real economic problems.
Roll the dice ben.
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