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Yellen’s Not on Team Krueger When it Comes to Inflation and the Unemployed

Wall Street Journal Original article ›

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Yellen and Krueger on low short term unemployment pushing inflation up when long term unemployment is high

04/16/2014

Yellen's position is that it is premature to assume low short term unemployment at a time of high long tem unemployment will lead to increasing inflation. Krueger's research shows that this can happen. Yellen prefers to go by a range of indicators and look at the overall picture of evidence from economic trends including deflationary trends in Europe, low inflation and low wage pressures in the U.S. with slack in the economy.

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