Why was there low unemployment in the 90s?

Doug Henwood dhenwood at panix.com
Thu Jun 27 09:04:29 PDT 2002


Blade Blade wrote:


>What caused the relatively low unemployment in the US
>in the 90s?

The Fed allowed it to happen - i.e., it stood aside and let the U rate fall as borrowed money and irrational exuberance drove the economy into a boom. It didn't worry about rising wages and inflation because the rest of the world was falling apart, so prices behaved themselves.

Doug



More information about the lbo-talk mailing list