In a depression we are not likely to have the situation you describe. It is not clear that increasing inflation through measures such as the Feds have used will increase employment that much when the trend is downward--- at most it may make the decline less steep. At the same time the inflation will cause a decline in purchasing power of the wages of those working. Surely, the evidence is that more and more people are unable to make ends meet and that food banks are in effect going almost bankrupt because of increased demand.
Robert Naiman <[EMAIL PROTECTED]> wrote: > aren't progressive economists generally of the view > that a little extra > inflation isn't such a terrible thing? > > suppose that unemployment is 6% and inflation is 3%. > Behind Door Number Two > we have: inflation is 6% and unemployment is 3%. > > shouldn't we favor Door Number Two? > > On Sun, Mar 30, 2008 at 9:20 AM, ken hanly > <[EMAIL PROTECTED]> wrote: > > > > > Isn't there a problem with government attempts to > > solve the liquidity crisis and stimulate the > economy. > > Aren't they liable to cause inflation especially > when > > combined with high oil prices and agricultural > > production shortages that are driving up prices. > > Converting agricultural to biofuel production > doesn't > > help either. Couldn't we end up with RECession and > > inFLATION? > > > > Cheers, Ken Hanly > > > > Blog: http://kenthink7.blogspot.com/index.html > > Blog: http://kencan7.blogspot.com/index.html > > _______________________________________________ > > pen-l mailing list > > [email protected] > > https://lists.csuchico.edu/mailman/listinfo/pen-l > > > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > Blog: http://kenthink7.blogspot.com/index.html Blog: http://kencan7.blogspot.com/index.html _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
