RealTime Economic Issues Watch
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REUTERS/Brian Snyder
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Olivier Blanchard (PIIE), Alex Domash (Harvard University) and Lawrence H. Summers (Harvard University)
The Federal Reserve seeks to cool an overheated US labor market to ease wage hikes and reduce job vacancies, without a painful spike in unemployment. But empirical evidence indicates that these goals have never been accomplished together and remain unlikely now. In fact, fighting inflation will require a reduction in job vacancies and also an increase in unemployment.
The Peterson Institute for International Economics building is open on a limited basis. Employees and visitors must be fully vaccinated, with a booster shot, and verify vaccination records before entering the building by registering with CrowdPass, a HIPAA-compliant web application service.
Photo Credit:
REUTERS/Brian Snyder
