International -- Readers Report
REMEMBERING THE MASSACRE AT MEDUGORJE (int'l edition)
Your article on Bosnia ("As mobsters flaunt their piety, pilgrims bring in the big bucks," Spotlight, Nov. 4) fails to mention an earlier episode in Medugorje's history. On June 28, 1941, local Croat Ustasha units began a wholesale massacre of Serb civilians. Many hundreds of women and children were killed in a ravine less than two miles from the Franciscan monastery at Medugorje. An obelisk and chapel dedicated to the victims no longer stand.
You also fail to mention that there are hardly any Serbs left in nearby Mostar, where, in 1991, they constituted one-fifth of the population.
EnglandReturn to top
DEFINING A `NATURAL' EMPLOYMENT RATE (int'l edition)
Kuttner is misguided in his attempt to discredit the model of "natural rate" of noninflationary unemployment. Kuttner cites the prevailing low inflation rate. He suggests that inflation is not likely to percolate through the economy--despite a tightening of local labor markets--because the prices of consumer goods are set globally.
Outside the ivory tower, only a minority of consumer expenditures are for items that are tradable. Prices for housing, health care, child care, restaurants, and dry cleaning are set locally. The cost of dry cleaning a shirt in Mexico City or of a meal in Manila is irrelevant to price levels for corresponding purchases in the U.S.
As local labor markets continue to tighten, wage levels will surely rise, and we consumers will find that our dollars buy less of the goods and services we consume on a daily basis.
San FranciscoReturn to top