Close

Sun Subscriber Website Login






Please wait....
 
News Story
Updated: 03/16/2014 08:00:01AM

Tightening monetary screws is a bad idea

Share this story:


Text Size:


Four years ago, some of us watched with a mixture of incredulity and horror as elite discussion of economic policy went completely off the rails. Over the course of just a few months, influential people all over the Western world convinced themselves and each other that budget deficits were an existential threat, trumping any and all concern about mass unemployment. The result was a turn to fiscal austerity that deepened and prolonged the economic crisis, inflicting immense suffering.

And now it’s happening again. Suddenly, it seems as if all the serious people are telling each other that despite high unemployment there’s hardly any “slack” in labor markets — as evidenced by a supposed surge in wages — and that the Federal Reserve needs to start raising interest rates very soon to head off the danger of inflation.

You are currently not logged in
By logging in you can see the full story.

Subscribe to 
							the E-Edition
Get the Sun Delivered


ADVERTISEMENT