NP - Structural w/ Austerity or Demand-Lack w/ Stimulus?

[David Morris]

Both sides of the fence, Alice?
Sorry, Krug doesn't agree w/ you. He says so explicitly, so your hedging
will not prosper in his book.
But you fit his structuralist bill perfectly when you say "What can be done
about this? Not much."
That's the Structuralist's plan: Nothing.

On Friday, May 11, 2012, alice wellintown wrote:

> Krug suspects, as do most people who study this problem, that we may
> be looking at higher unemployment in the USA, that is, higher than its
>  "longer-run normal value"  (5%-6%),  for several years.
>
> Is the unemployment structurual? Hard to say for sure, but there is
> reason to agree with Krug on this. And, the Fed agrees that structural
> unemployment, while quite difficult to measure, is not what we have so
> much as cyclical unemployment, slack demand.
>
> What can be done about this? Not much. The Fed is doing its job. The
> fiscal headwinds need to be dealt with next. Unemployment, sad to say,
> will not return to normal for some time if all goes as forcast.
>
> on JPM Chase, I agree with ROBERT B. REICH: Break up the big banks and
> put some kind of GS back in place.
>
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