tag:blogger.com,1999:blog-7806136543904112143.post5406025585497566073..comments2023-10-30T09:23:42.803-05:00Comments on Some Assembly Required: SAR #12133Charles Kingsley Michaelson, IIIhttp://www.blogger.com/profile/04364694465614330540noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7806136543904112143.post-78946852161889054132012-05-13T05:31:39.067-05:002012-05-13T05:31:39.067-05:00«8% is as low as unemployment can go without trigg...«<i>8% is as low as unemployment can go without triggering inflation</i>»<br /><br />That has been the plan for a long time (around 30 years).<br /><br />First, when someone talks "inflation" always ask <b>which</b> inflation. Because there are many types of "inflation". For example capital gains income inflation vs. wage income inflation, or asset price vs. durable good price vs. consumption good price, etc.<br /><br />The Fed Board targets a measure of inflation which is designed to represent wage income inflation.<br /><br />What Kocherlakota is saying therefore is that high unemployment is needed to keep down wages, which is pretty obvious. He has read Marx and knows about the "labor reserve army" concept, just like every CEO and other social darwinists.Blissexnoreply@blogger.com