4 ms·
There's a theoretical relationship between the inflation rate and the unemployment rate [1], and the Federal Reserve has a dual mandate which is price stability
by lottin 5y ago
There's a theoretical relationship between the inflation rate and the unemployment rate [1], and the Federal Reserve has a dual mandate which is price stability and maximal employment. You may not agree with the theory, but the Fed's policy is supported by an economic theory.
[1] https://www.jstor.org/stable/40721805 https://www.jstor.org/stable/40721805