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On The Political Economy Of Permanent Stagnation - NYTimes.com
▻http://krugman.blogs.nytimes.com/2013/07/05/on-the-political-economy-of-permanent-stagnation

..I think many of us used to believe that sustained high unemployment would lead to substantial, perhaps accelerating deflation — and that this would push policymakers into doing something forceful. It’s now clear, however, that the relationship between inflation and unemployment flattens out at low inflation rates. We can probably have high unemployment and stable prices in Europe and America for a very long time — and all the wise heads will insist that it’s all structural, and nothing can be done until the public accepts drastic cuts in the safety net.