I cant belive my man thinks rasing intrest rates will do anything to combat wages going up due..... too...

  1. 1 million dead Americans due to rona( and counting)
  2. Rising class conscious due to how rona was handled
  3. 54 million boomer Americans are gonna be dead in less then a decade due to age
  4. Stagnate casino econmy predicated on cheap labor + imperialism × decaying gentocracy

Whats the plan Man? How you gonna fix this shit once it crashes, how many times is he gonna quatativly ease him self when inflation is rampant and not gonna respond to increassd intrest rates. Go Volcker suck on these these nuts

Go crazy tell me where you think the ecomy is going

  • Hmm [none/use name]
    ·
    2 years ago

    Published by the Federal Reserve in May 2022 (although the paper itself is dated September 2021):

    Who Killed the Phillips Curve? A Murder Mystery

    https://doi.org/10.17016/FEDS.2022.028

    Abstract:

    Is the Phillips curve dead? If so, who killed it? Conventional wisdom has it that the sound monetary policy since the 1980s not only conquered the Great Inflation, but also buried the Phillips curve itself. This paper provides an alternative explanation: labor market policies that have eroded worker bargaining power might have been the source of the demise of the Phillips curve. We develop what we call the "Kaleckian Phillips curve", the slope of which is determined by the bargaining power of trade unions. We show that a nearly 90 percent reduction in inflation volatility is possible even without any changes in monetary policy when the economy transitions from equal shares of power between workers and firms to a new balance in which firms dominate. In addition, we show that the decline of trade union power reduces the share of monopoly rents appropriated by workers, and thus helps explain the secular decline of labor share, and the rise of profit share. We provide time series and cross sectional evidence.

    The Kalecki of their "Kaleckian Phillips curve" is Michał Kalecki, who was a 20th century economist considered part of the Neo-Marxian school of economics.

    • Hmm [none/use name]
      ·
      2 years ago

      Excerpt from a press conference Jerome Powell did on 4 May 2022 after the Federal Reserve's monetary policy meeting that day:

      Q: Your level of confidence that you can slow hiring without pushing the economy into a downturn.

      MR. POWELL: So I guess I would say it this way. It’s—there’s a path. There’s a path by which we would be able to have demand moderate in the labor market and have—therefore have vacancies come down without unemployment going up, because vacancies are at such an extraordinarily high level. There are 1.9 vacancies for every unemployed person; 11½ million vacancies, 6 million unemployed people. So—and we haven’t been in that place on the vacancy—you know, through the vacancy/unemployed curve, the Beveridge curve. We haven’t been at that sort of level of a ratio in the modern era.

      So in principle, it seems as though, by moderating demand, we could see vacancies come down, and as a result—and they could come down fairly significantly and I think put supply and demand at least closer together than they are, and that that would give us a chance to have lower—to get inflation—to get wages down and then get inflation down without having to slow the economy and have a recession and have unemployment rise materially. So there’s a path to that.

      Now, I would say I think we have a good chance to have a soft or softish landing, or outcome, if you will. And I’ll give you a couple of reasons for that. One is, households and businesses are in very strong financial shape. You’re looking at, you know, excess savings on balance sheets; excess in the sense that they’re substantially larger than the prior trend. Businesses are in good financial shape. The labor market is, as I mentioned, very, very strong. And so it doesn’t seem to be anywhere close to a downturn.

      Therefore, the economy is strong and is well positioned to handle tighter monetary policy. So—but I’ll say I do expect that this will be very challenging. It’s not going to be easy. And it may well depend, of course, on events that are not under our control. But our job is to use our tools to try to achieve that outcome, and that’s what we’re going to do.

      Source: https://www.wsj.com/articles/transcript-fed-chief-powells-postmeeting-press-conference-11651696613

      • Hmm [none/use name]
        ·
        2 years ago

        And he's echoed this more recently as well:

        (CNN) - Federal Reserve Chairman Jerome Powell told lawmakers on Thursday [23 June 2022] that aggressive interest rate hikes designed to tame inflation could lift unemployment on Main Street.

        Powell said that although it's "certainly possible" to get inflation under control without causing job losses, that may not be the case.

        "There is a risk that unemployment will move up, from what is an historically low level though," Powell said during a hearing before the House Financial Services Committee.

        Powell said the Fed's interest rate increases are "designed to drive growth down to a level that is more sustainable and give the supply side a chance to catch up."

        However, he conceded that the Fed does not have "precision tools" and job losses could be in the cards.

        The unemployment rate stood at just 3.6% in May, down from nearly 15% in April 2020. Last week, Fed officials projected the unemployment rate will rise to 3.9% at the end of 2023 and 4.1% at the end of 2024.

        Powell said that unemployment above 4% would "still be very strong."

        The Fed chair noted that today there are two vacancies for every unemployed person. "That's a labor market that's kind of overheating," he said.

        Source: https://edition.cnn.com/2022/06/23/economy/fed-jerome-powell-house-testimony

        • Hmm [none/use name]
          ·
          2 years ago

          So Powell's trying to walk a tightrope using the tools the Federal Reserve has: he is trying to in effect discipline labor by using interest rates to loosen the job market, but he's hoping to do it without dipping the economy into a recession.

          He's established that he's very much aware of how there's risk in his strategy. He isn't making guarantees about avoiding a recession.

    • culpritus [any]
      ·
      2 years ago

      we show that the decline of trade union power reduces the share of monopoly rents appropriated by workers, and thus helps explain the secular decline of labor share, and the rise of profit share

      share of monopoly rents appropriated by workers

      dismal science indeed