Inflation vs. Unemployment (user search)
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  Inflation vs. Unemployment (search mode)
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Poll
Question: Controlling inflation is more important than controlling unemployment.
#1
Strongly disagree
 
#2
Disagree
 
#3
Agree
 
#4
Strongly agree
 
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Partisan results

Total Voters: 41

Author Topic: Inflation vs. Unemployment  (Read 21777 times)
muon2
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« on: October 22, 2004, 09:42:38 PM »

Agree. There is a simple rule I learned in economics class: The higher inflation is the lower unemployement will be, the lower inflation is the higher unemployment will be. We don't want too much of either, but given the choice I would prefer to control inflation, as high inflation ultimately does far more damage to the economy in the long term.
Unfortunately, the rule you leaned is clasical Keynesian economics. It has been shown to have exceptions in modern economies, particularly in the 1970's. See for example stagflation.
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