How Much Should We Worry About Debt, Inflation, and Unemployment? (1062132)

Here are the slides from a talk I gave last night:

How Much Should We Worry About Debt, Inflation, and Unemployment? (ppt ) (pdf)

The last slide concludes with:

We face a tradeoff. Attempts to lower unemployment can increase the risk of inflation and increase the debt . The reverse is true as well. Attempts to lower the debt and reduce the risk of inflation can increase unemployment.

In my view, presently we are too worried about inflation and debt, and not worried enough about unemployment.

Posted by Mark Thoma on Wednesday, March 6, 2013 at 12:24 AM in Budget Deficit, Economics, Inflation, Unemployment?| Permalink? Comments?(25)

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