Mish's Global Economic Trend Analysis Sun 2009-09-20 11:23 EDT
Yellen Calls For "U" Shaped Recession and Another Jobless Recovery
...excerpts from Janet Yellen's Outlook for Recovery in the U.S. Economy: ...the complex topic of inflation. In my career, I have never witnessed a situation like the one that exists now, when views about inflation risks have coalesced into two diametrically opposed camps. On the one hand, one group worries about the long-term inflationary implications of a seemingly endless procession of massive federal budget deficits. At the same time, others fear that economic slack and downward wage pressure are pushing inflation below rates that are considered consistent with price stability and even raising the specter of outright deflation... My personal belief is that the more significant threat to price stability over the next several years stems from the disinflationary forces unleashed by the enormous slack in the economy.
Jobless Recovery; Mish's Global Economic Trend Analysis; Shaped Recession; U; Yellen called.