PKT debate

[PHILLPS@xxxxxxxxxxxxxxxx]

A quick response to Bill and Steve:
  I was referring specifically to the 1993 version of the Accord,
Mark VII. "Putting Jobs First" which returns to the jobs emphasis
of the 1983 Accord.  Implied in the balance of policies is
stimulating demand for labour by fiscal and monetary policies -- in
particular tax policies but also infrastructural support and
industrial policy, but holding down wages to approximately 2% per
year (higher only with productivity increase offsets) which
approximates the current inflation rate for the next three years.
This implies to me a belief that there is no such thing as a NAIRU
and that unemployment can be combated through traditional macro
policies of expansion provided that the Phillips curve can be made
horizontal by wage controls and labour market "flexibility"
policies, including education and training.  Is that your reading
of it?

Regards and fond memories,
Paul
Paul Phillips
University of Manitoba