|
Re: UK Economy Emerges From Six-Year Downturn
Quote:
Frances Coppola @Frances_Coppola · 5m
I don't like the implications of the combination of rising unemployment with sticky prices and anchored inflation expectations.
implies that 1) in a downturn firms sell off inventory at pre-recession prices 2) firms use workers as countercyclical buffer.
implies that when sales volumes fall firms prefer to lay off workers rather than cut prices.
Rising unemployment + sticky prices = human misery.....
|
Ah capitalism.
|