Blanchard and Summers clash with Fed over soft landing
Economists challenge Fed view that fall in vacancies can save US from mass unemployment
Several economists took aim at the Federal Reserve’s planned ‘soft landing’ in a scathing article published on August 1.
Olivier Blanchard, Larry Summers and Alex Domash – all affiliated with research organisation the Peterson Institute – say there must be a palpable and uncomfortable rise in US unemployment to bring down inflation. They dismissed the idea of a soft landing as unfeasible.
“We understand the desire of senior officials to hold out the soft landing prospect of a return to target
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