Friday, January 6, 2017

Fed jargon maximum employment means the vicinity of 5% unemployment

Maximum is a curious term for this  5% zone

One wonders how this translates
Anything much lower then this zone leads to ever accelerating wage rate gains or the like

Ever accelerating

Recall above this zone leads to ever decelerating wage rate gains
Errr up to the zero gain barrier that is

Price stability of course is another curious fed  term
Translates as
Stable and low  price inflation
Do these off target terms have a conditioning effect
On expert thought processes ?