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PBoC Spins China’s Bad-Loan Data

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Feb 7, 2017

Monetary Policy
Why Does the Fed Keep Lowering Its Unemployment Threshold?

For years, Fed watchers have been getting antsy as unemployment falls toward NAIRU—the Fed’s estimate of the bound below which inflation rises.  But as shown in the graphic above, each time unemployment has threatened to break through NAIRU the Fed has lowered NAIRU rather than raise interest rates.  Why?

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