Essay about An Article Of The Article '

1062 Words Mar 1st, 2015 null Page
A summary of the article An article named “will hold down rates spark inflation without helping the long-term unemployed?” was published on June 17, 2014 by the Wall Street Journal. This article talks about the great number of Americans who were forced out of work for long during the downturn period. The article covers, the means to stimulate jobs without rising inflation. Based on the report, the discussions over the nature of the long-term unemployment are principally dynamic within the Federal Reserve (McGrane, 2014). Fed officials face a challenge of whether to keep attempting to stimulate economic development and hiring by holding short-term rates of interest to about zero, or will low rates ultimately ignite inflation without assisting those long out of work. This article was further supported by evidence showing a report by the Labor Department, which reported that consumer; prices were up 2.1% in May from a year earlier, the biggest increase since late 2012. The article argues that millions of citizens can be drawn back into steady work only if the economy strengthens. They, therefore, signify a concealed supply of labor that will keep inflation low. The 1970’s unemployment and inflation named stagflation was against the common principle where inflation fell as unemployment rose. Nevertheless, the idea that economic sagging for instance, unemployment lowers inflation remains a significant component of economic thinking at present. In the March article,…

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