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Number of the Week: Could Inflation Revive the Recovery?
Ben Casselman, The Wall Street Journal 4.2%: How high inflation would be if the Fed allowed prices to stray as far from its target as unemployment has. The Federal Reserve has a dual mandate to promote both price stability and maximum employment. It’s a delicate balancing act: Focus too much on keeping inflation in check and the Fed runs the risk of strangling growth, driving up unemployment; focus too much on promoting hiring and inflation can quickly spin out of control. Read More