Current Event Article Evaluation

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The article is simple enough. The issue here is over the potential benefits of inflation. The debate is between the dean of liberal economists, Paul Krugman, and the more conservative Fed chair, Ben Bernanke. Krugman is arguing for an inflationary policy for the purpose of boosting employment.

The author claims; however, that there is no clear relation between the inflation rate and and any subsequent rise in employment. The claim is that every period of inflation leads to a drop in employment.

The first example he uses is from the early 1970s. This was a time of substantial inflation, reaching 11% by 1974. The employment rate increased by 1974 to 7.2% and then, a year later, to 8.2%. By 1980, inflation was at 13.5% - this only meant that unemployment rose to ...