Tag Archives: harry collins

Sociologists would recognize economics as a science, or: How low can U go?

Paul Krugman noted on his blog Friday that the Federal Reserve’s estimate of the Non-Accelerating Inflation Rate of Unemploment (NAIRU), in other words the predicted lowest level of unemployment that won’t cause inflation to rise, has been falling for several years. “Estimates of how low U can go seem always to be a bit below the current level of unemployment,” he writes, and produces the following chart:

This chart reminded me of another visual, one that made quite an impact on me when I first saw it as an impressionable college student. Continue reading