Re: Re: Re: Re: pool of available workers

[Doug Henwood <dhenwood@xxxxxxxxx>]

Jim Devine wrote:

> Is Greenspan simply digging up numbers that have recently been provided by
> the BLS and using them to rationalize the failure of Phillips Curve models
> to predict inflation well? or have his economists developed a time-series
> going back to 1950 or 1960 of some alternative unemployment rate that they
> stick into a PC model that does predict inflation well?
>
> I looked for the latter and found only that the Fed economists were
> attributing low inflation to the high profitability of business these days
> (as quoted in an earlier message). They were still using the usual official
> U rates.

I doubt Greenspan's working with a formal model - he's
operationalizing Kalecki on the impossibility of full employment from
the point of view of a central banker.

Doug