“In a landmark 1968 paper, “Money-Wage Dynamics and Labor-Market Equilibrium”, (Edmund) Phelps argued for a complex view on inflation. He agreed that stoking the economy to keep inflation up might help keep unemployment down in the short term. But to do so over the long term, he wrote, economic stimulus would have to keep growing, and inflation would keep rising too.” Business Standard. I’ve worked for companies who proclaimed their sales had increased by 3% in spite of raising their prices by 5%. Say What! Friedman was a real liberal in the true meaning of the word! I’m a huge Milton fan! RIP Phelps!
“Dr Phelps came to many of the same conclusions, at around the same time, as another Nobel recipient, Milton Friedman, one of the most famous and polarising American economists of the 20th century. Jason Furman, a professor of economic policy at Harvard, said in an interview with The Times that Phelps’s message was more generally accepted than Friedman’s because he was not considered the kind of partisan conservative figure that Friedman was.” Business Standard. I remember reading Friedman’s book in a UMASS economics class and my socialist classmates all said that they knew Friedman was wrong but they just didn’t know why! Say What!
And that is all I’m going to say about that!
Drain the Cesspool 