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The Fed's Third Mandate(fortune.com)
3 points by kaycebasques 12 hours ago | 1 comments
FrankWilhoit 11 hours ago | parent [-]

In practice, inflation and interest rates must move together; the markets will not permit them to diverge beyond a band. Also in practice, the employment target is understood as a labor surplus; neither policymakers, nor academic economists, nor employers, are intellectually equipped to understand an economy that is not in labor surplus.