Re: Krugman’s Latest
Sure, but the overall thrust of the Greenspan years has not been tightness. He’s presided over 2 1/2 speculative bubbles of historic proportions (the end of the 80s leveraging mania is the half; the full manias are the 90s stock bubble and the 00s housing bubble).
And employment was growing quite rapidly in 93-94 - about twice the current rate (the equivalent of about 336,000 a month today, in contrast with the recent average of 168,000).
Doug
Max B. Sawicky wrote:
There was a mini-uproar in 93-94 over Fed restraint.
mbs
> >
But Greenspan hasn’t run a tight policy since the first few months of 1987. He let unemployment get very low in the mid-90s, and did everything he could to keep the economy from sinking in 2000-1. The reason, of course, was that the working class had already been defeated in the 1980s, so it didn’t matter. But that’s another story.
Doug
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