It’s curious to see a social science change, but that appears to be precisely what happened earlier today for economics in the US. If you’re familiar, there’s a common belief in economics that unemployment and inflation are innately counterbalances to each other, at least in the short term. Since the inflation of the 1970s, unemployment has been talked about as a serious issue, but largely played second fiddle to keeping inflation comparatively low.
That’s part of what makes the Fed’s decision today so groundbreaking. It’s quite literally begun openly arguing for the reversal of those priorities in not only words but also deeds. Inflation, which has been kept as low as possible by earthly means, will be tolerated at higher levels now provided it allows the economy to restabilize and reduce unemployment.
After years of rhetoric from both parties about jobs, something concrete might actually get done.