Discussion about this post

User's avatar
James E Keenan's avatar

In their conclusions, Bernanke and Blanchard write:

"... as of early 2023, tight labor market conditions still accounted for a minority share of excess inflation. But according to our analysis, if current labor market conditions persist, that share is likely to grow and will not subside on its own. The portion of inflation which traces its origin to overheating of labor markets can only be reversed by policy actions that bring labor demand and supply into better balance."

That sounds to me as if they're saying, "In this round of inflation, we haven't been able to pin the blame on those greedy workers *yet*, but that won't stop us from trying to do so going forward."

Expand full comment
Wayne McMillan's avatar

Thanks Brian. Looks like B & B now known as Double B have given this issue a little more thought than usual. My hunch is that Blanchard is moving much

closer to economic reality than Bernanke.

Expand full comment
6 more comments...

No posts