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The first point was whether a low unemployment rate is bad. You rightly pointed out that the Fed tries to keep the unemployment rate above a zero. The dub reason is to prevent wage inflation. This prevents all the bad things described above. The idea is to try to keep the economy at it's maximum sustainable growth. dub If it grows too fast, inflation perks up and the economy drops. If it slows too hard, we have a recession and high unemployment. The dub effect should be to smooth the ripples of the business cycle. And this is a good thing. --t "There is no pain in death; it only hurts to die." -Quicksand [ ...reply
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