Re: TWO natural rates of unemployment?

[jim devine <JNDF%LMUACAD.BITNET@xxxxxxxxxxxxxxxxx>]

On Wed, 05 Apr 1995 08:11:50 -0600 Doug Henwood said:
>I like Ellen Frank's suggestion that we start talking instead about a
>natural rate of inflation, and any attempt to push it below that level
>would result in intolerably high increases in unemployment.
>
This makes a lot of sense in terms of the long-established literature
that argues that a little bit of inflation is "good for business"
by allowing greater flexibility and that actual deflation is
a disaster.

sincerely,

Jim Devine
jndf@xxxxxxxxxxxxxx or jdevine@xxxxxxxxxxxxxxx
Econ. Dept., Loyola Marymount Univ., Los Angeles, CA 90045-2699 USA
310/338-2948 (daytime, during workweek); FAX: 310/338-1950
"Segui il tuo corso, e lascia dir le genti." (Go your own way
and let people talk.) -- K. Marx, paraphrasing Dante.