Wednesday, December 30, 2009

Saddling Middle America

Tyler Cowen wonders Why hasn't the Fed been targeting two or three percent inflation? and doesn't like the implications:
I also regard this as a somewhat gruesome hypothesis. It means that "Main Street" is paying for "Wall Street" (forgive me the use of those awful terms) in at least two ways: high unemployment and inability to earn much on one's savings.

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