asterisk2a + liberal + dual-mandate   1

Economics by invitation - Labour Unions and Dual-mandate of the Fed
ACCORDING to standard economics, wage bargaining by unions is similar to price agreements in cartels and in good logic should fall under antitrust laws and be prohibited. Just as cartels inefficiently increase the price of some goods, similarly unions inefficiently increase the price of some categories of labour.

While this “dual mandate”—full employment and price stability—worked reasonably well for about 20 years, it failed to prevent the Great Crisis. And so the mandate needs to be changed once again—this time, with an aim toward protecting financial and economic stability.

http://www.economist.com/economics/by-invitation/questions/modern_central_bank_need_reform
union  liberal  economics  freemarkets  Fed  dual-mandate  inflation  unemployment  2011 
march 2011 by asterisk2a

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