3 Burst results for "Jerry Palestine"

"jerry palestine" Discussed on WNYC 93.9 FM

WNYC 93.9 FM

02:22 min | 3 years ago

"jerry palestine" Discussed on WNYC 93.9 FM

"It's morning edition from NPR news. I'm Rachel Martin. And I'm David Greene. Three of the most important economists in this country sat down for a panel at an economic conference in Atlanta last week, former fed chair, Ben Bernanke and Janet Yellen along with the current pitcher Jay Powell were talking shop and also talking about the latest jobs report, but his Cardiff Garcia and Stacey Vanik Smith planet money podcast, the indicator. Tell us a stellar jobs report is not always a good thing. It was a pretty stellar report. Three hundred twelve thousand jobs added in December strong wage growth. And of course, unemployment is still below four percent. And then here's Jay Powell's response. That's quite welcome. And also for me at this time does not raise concerns about to high inflation does not raise concerns about to high inflation that seems like a weird comment to make right? We added all these jobs, but that doesn't mean I'm worried about inflation. But economists discussed the relationship between unemployment and inflation all the time that relationship is sometimes. For you as the Phillips curve. And that's this idea that if enough people are working it will cause inflation that prices of the things that we buy we'll start going up, and according to the Phillips curve, the reverse is also true. So if unemployment goes up then inflation should come down because then companies don't have to raise wages to compete for workers. There's more workers out there who need a job. And we got kind of a test of this back in the late seventies early eighties. Inflation seem to be getting out of control prices were rising up and up and up into get inflation under control, Paul Volker. He was the head of the Federal Reserve at the time raised interest rates all the way to twenty percent by comparison, by the way, short-term interest rates right now are two percent. But we'll Volker did lead to a weaker economy and unemployment went up all the way up to ten percent inflation. No did come down. So everybody's wondering is chair Powell gonna worry about inflation? And is he then going to keep raising interest rates to prevent inflation from spike. Higher for me. At this time does not raise concerns about to high inflation Jerry Palestine, even though unemployment is low and wage growth is rising. It doesn't necessarily mean that higher inflation will follow. So this relationship between inflation in jobs, even though the Phillips curve predicts it Powell's not really seen it. Let's curvy so busy.

Jay Powell Phillips Paul Volker Rachel Martin David Greene NPR Ben Bernanke Jerry Palestine Janet Yellen Federal Reserve Stacey Vanik Smith Atlanta Cardiff Garcia twenty percent four percent ten percent two percent
"jerry palestine" Discussed on WNYC 93.9 FM

WNYC 93.9 FM

02:41 min | 3 years ago

"jerry palestine" Discussed on WNYC 93.9 FM

"Night into Sunday. It's morning edition from NPR news. I'm Rachel Martin. And I'm David Greene. Three of the most important economists in this country sat down for a panel at an economic conference in Atlanta last week, former fed chair, Ben Bernanke and Janet Yellen along with the current pitcher Jay Powell were talking shop and also talking about the latest jobs report. But as Cardiff Garcia and Stacey Vanek Smith from our planet money podcast, the indicator. Tell us a stellar jobs report is not always a good thing. It was a pretty stellar report. Three hundred twelve thousand jobs added in December strong wage growth. And of course, unemployment is still below four percent. And then here's Jay Powell's response. That's quite welcome. And also for me at this time does not raise concerns about to high inflation does not raise concerns about to high inflation that seems like a weird comment to make right? We add it all these jobs. But that doesn't mean I'm worried about inflation, but it communists, discussed the relationship between unemployment and inflation all the time that relationship. Is sometimes referred to as the Phillips curve. And that's this idea that if enough people are working it will cause inflation the prices of the things that we buy we'll start going up, and according to the Phillips curve, the reverse is also true. So if unemployment goes up then inflation should come down because then companies don't have to raise wages to compete for workers. There's more workers out there who need a job. And we got kind of a test of this back in the late seventies and early eighties. Inflation seem to be getting out of control prices were rising up and up and up and to get inflation under control, Paul Volcker. He was the head of the Federal Reserve at the time raised interest rates all the way to twenty percent by comparison, by the way, short-term interest rates right now are two percent. But we'll Volker did lead to a week or Konami and unemployment went up all the way up to ten percent inflation, though, did come down. And so everybody's wondering is chair pal gonna worry about inflation? And is he then going to keep raising interest rates to prevent inflation. From spiking higher for me. At this time is not raised concerns about to high inflation Jerry Palestine, the even though unemployment is low and wage growth is rising. It doesn't necessarily mean that higher inflation will follow. So this relationship between inflation in jobs, even though the Phillips curve predicts it POWs, not really seeing it. Let's curvy so busy Phillips.

Phillips Jay Powell Paul Volcker Rachel Martin NPR David Greene Ben Bernanke Stacey Vanek Smith Jerry Palestine Cardiff Garcia Janet Yellen Atlanta Federal Reserve Konami Volker twenty percent four percent ten percent two percent
"jerry palestine" Discussed on The Indicator from Planet Money

The Indicator from Planet Money

04:27 min | 3 years ago

"jerry palestine" Discussed on The Indicator from Planet Money

"And we got kind of test to this starting back in the very late nineteen seventies and early nineteen eighties. Inflation was really high and seemed to be out of control prices were rising and rising and rising and then Paul Volcker PUM Jagger Volker. Okay that works. He was the head of the Federal Reserve at the time and Volker did to get inflation under control. Was he raised interest rates all the way to twenty percent by comparison interest rates right now. Short-term interest rates are two percent. All right. So raising interest rates all the way to twenty percent lead to a weaker Connie and unemployment went up way up. It went all the way up to ten percent. But inflation did come down. And ultimately the economy settled down and seemed to be on track by the early eighties, which brings us back to Jay house comment. The unemployment rate is low right now and in twenty eighteen wage growth did start exceleron. And so everybody's wondering is chair pal. A look at this and worry about inflation. And then going to keep raising interest rates to prevent inflation from spiking higher for me. At this time doesn't does not raise concerns about to high inflation Jerry Palestine, the even though unemployment is low and wage growth is rising. It doesn't necessarily mean that higher inflation will follow. So this relationship between inflation in jobs, even though the Phillips curve predicts it POWs, not really seeing it death-list curvy and Janet Yellen, by the way, Janet Conde gallon agreed. The linkage. So I believe that there is a linkage between slack in the labor market in product markets and inflation, but the strength of that linkage is not very great. So we have relatively flat Phillips curve is in the way of putting that a flat Phillips curve. So nick. Phillips curve dead. So so to use a slaying economic jargon. This is in dodge Innis, phenomenon dodgy phenomenon exactly I was just thinking that you know, what? But also he recognized that he was dropping a jargon bomb. So that's okay. Basically, what Bernanke saying is that the relationship between unemployment and inflation has changed. And he says it started changing with Volker in the late seventies. Chairman Volcker three of us a big favor by hanging flation under control, and helping to anchor inflation expectation, basically back when inflation was super high in the seventies people then saw that the Federal Reserve would raise interest rates really high. If it needed to to bring inflation back down and ever since then inflation has stayed low because of that people in companies right now don't think there's much of a chance that inflation will get out of the Fed's control in the future. And here's the key people and companies act accordingly because if they worried that inflation was going to be much higher in the future. They would spend more money now while their dollar would still buy stuff and companies would raise prices to try to get ahead of the trend and that would contribute to inflation going higher right now. But. It's not happening right now. Unemployment is low and yes wage growth is going up, but companies are not raising their prices aggressively. And what Ben Bernanke you saying is that it's precisely because of what the fed did in the past that the link between low unemployment and high inflation is weaker than it used to be and the gave us flexibility the ability to to take very stimulant of steps without worrying place, you'll become immediate problem. And that's the quote in dodge in his reason, why the Phillips curve is so flat thinks part of the reason inflation stays in. Check is because of this faith in the job of Federal Reserve chair that faith is part of what changed the economic relationship between unemployment and prices, so the communists still strongly debate whether the Phillips curve is really dead or just resting. But if it is then it was possibly killed by the people in this room people with this job fed chair. In other words, it's Dazs Innis. The indicator is produced by Constanza guy Gherardo edited by paddy Hirsch and produced by NPR. Human behaviour doesn't always make a ton of sense at least on the surface. I said, would you mind if I give the dogs a little piece of cracker with some hot sauce on it? And without and see what they choose hidden brain, a spicy podcast about science psychology. And why people do what they do.

Jagger Volker Phillips Federal Reserve Ben Bernanke Paul Volcker nick dodge Innis Dazs Innis paddy Hirsch Janet Yellen Jerry Palestine Janet Conde Jay Volcker NPR Chairman stimulant