Jim Devine wrote:
> what Alan G. and the Feds want. They hope, of course, that the US economy
> will attain the Holy Grail of monetary policy, "the soft landing" (a
> slower, but not negative, GDP growth rate). I don't know if they're
> conscious of the possibilities for a "hard landing" or worse resulting from
> consumer indebtedness, the large US deficit on the current account, the
> accelerator effect, etc.
As usual, I agree entirely. Another factor to look for is the
non-synchronization of the effects of monetary policy on employment and
prices. I suspect we're in for a period of accelerating inflation and
rising unemployment -- the obverse of Goldilocks.
Pease porridge hot,
pease porridge cold.
Pease porridge in the pot,
nine days old.
Tom Walker
