[PEN-L:29899] RE: Re: Re: Bushies say NAIRU is 4.9

["Devine, James" <jdevine@xxxxxxx>]

Title: RE: [PEN-L:29890] Re: Re: Bushies say NAIRU is 4.9

 I didn't know that anyone was arguing about the "right number." Why is it a "trap"?

-----Original Message-----
From: Eugene Coyle
To: pen-l@xxxxxxxxxxxxxxxxxxx
Sent: 8/26/2002 5:59 PM
Subject: [PEN-L:29890] Re: Re: Bushies say NAIRU is 4.9

Arguing about whether the right number is 8.5% or 4.9% or 0.5% is a
trap.  The
figure for the NAIRU should not be a discussion we enter into.

Gene Coyle

Tom Walker wrote:

> I'll admit as much as "more coherent" or "more systematic" but "more
> scientific?" That's like saying one astrologer is more scientific than
> another.
>
> Jim Devine wrote,
>
> "The NAIRU is a more-scientific way to describe what Milton Friedman
calls
> "the natural rate of unemployment." His idea is that the economy
gravitates
> toward the natural rate unless the government or central bank screws
things
> up.
>
> Tom Walker
> 604 254 0470