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Strong Employment, Low Inflation: How Has the US Economy Done So Well?

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  • Rebecca M. Blank

Abstract

This paper reviews the strong economic news from the United States over the 1990s, with continuing economic growth in the presence of low unemployment and low inflation. This favourable unemployment- inflation trade-off has been possible in part because of a series of factors that kept price inflation low. In addition, a number of labour market changes have also allowed output (and employment) to grow without wage inflation. The paper explores a variety of theories about the long-run prospects for these trends to continue. The final section discusses some policy issues raised by this ongoing expansion.

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File URL: http://links.jstor.org/sici?sici=0317-0861%28200007%2926%3CS175%3ASELIHH%3E2.0.CO%3B2-U
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Bibliographic Info

Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 26 (2000)
Issue (Month): s1 (July)
Pages: 175-186

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Handle: RePEc:cpp:issued:v:26:y:2000:i:s1:p:175-186

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  1. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, The Earned Income Tax Credit, And The Labor Supply Of Single Mothers," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 1063-1114, August.
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Cited by:
  1. Yesim Kustepeli, 2005. "A comprehensive short-run analysis of a (possible) Turkish Phillips curve," Applied Economics, Taylor & Francis Journals, vol. 37(5), pages 581-591.

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