Pantheon Macroeconomics - The two key planks of the argument that a substantial easing of fiscal policy won't be inflationary are that labor participation will be dragged higher, limiting the decline in the unemployment rate, while productivity growth will rebound, so unit labor costs will remain under control.

U.S. | 20 December 2016 Fiscal Easing Likely Would Boost Productivity, but not by Enough
The two key planks of the argument that a substantial easing of fiscal policy won't be inflationary are that labor participation will be dragged higher, limiting the decline in the unemployment rate, while productivity growth will rebound, so unit labor costs will remain under control.

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20 December 2016 Fiscal Easing Likely Would Boost Productivity, but not by Enough

By Ian Shepherdson

The two key planks of the argument that a substantial easing of fiscal policy won't be inflationary are that labor participation will be dragged higher, limiting the decline in the unemployment rate, while productivity growth will rebound, so unit labor costs will remain under control.

Posted: 19th Dec 2016 in 'U.S.'

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