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Yes
Yes, the natural rate of unemployment is around 6%. Also Keynesian economics stipulates that there is a tradeoff between employment and inflation. Good advice though. I acknowledge that the Fed Funds rate is attributed to the FED either tightening the money supply or having a more leinent monetary policy; in other words, if the FED lowered the Fed Funds rate to 5.00%, it would buyback Treasuries from the marketplace thereby increasing the money supply. If it increased it to 5.5%, it would issue bonds to the public (thus tightening the market).
I believe we'll be at the peak of the business cycle by 2012 due to a biotech boom.
Last edited by aquaswim47; 04-09-07 at 07:50 AM.
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